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First Financial Bankshares Inc (FFIN) — WACC Analysis

WACC Breakdown

First Financial Bankshares Inc (FFIN) has a weighted average cost of capital (WACC) of 9.2%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 6.9%. The capital structure is 99.5% equity and 0.5% debt.

Interpretation

A WACC of 9.2% is moderate, reflecting the market's balanced risk assessment of First Financial Bankshares Inc.

Investors can compare FFIN's WACC of 9.2% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

FFIN WACC: 9.18% for First Financial Bankshares Inc

Current inputs imply a 9.19% cost of equity and a 8.69% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

First Financial Bankshares Inc Common Stock (FFIN) WACC Results
Weighted Average Cost of Capital
9.18%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
6.86%
Pre-Tax Cost of Debt8.69%
Tax Rate21.00%
Tax Shield1.82%
Capital Structure
Equity: 99.54%($4767.07M)
Debt: 0.46%($21.83M)
Equity Component
9.15%
99.54% × 9.19%
Debt Component
0.03%
0.46% × 6.86%

First Financial Bankshares Inc (FFIN) WACC in context

First Financial Bankshares Inc (FFIN) currently screens with an estimated WACC of 9.18%. That blends a 9.19% cost of equity, a 8.69% pre-tax cost of debt, and a 99.54% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What FFIN WACC implies

A 9.18% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates FFIN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 99.54% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.