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Stifel Financial Corp. (SF) — WACC Analysis

WACC Breakdown

Stifel Financial Corp. (SF) has a weighted average cost of capital (WACC) of 13.7%. 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 98.8%. The capital structure is 95.0% equity and 5.0% debt.

Interpretation

A WACC of 13.7% indicates that the market perceives Stifel Financial Corp. as higher-risk, requiring a greater return to compensate investors.

Investors can compare SF's WACC of 13.7% 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

SF WACC: 13.66% for Stifel Financial Corp.

Current inputs imply a 9.19% cost of equity and a 125.10% 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

Stifel Financial Corp. Common Stock (SF) WACC Results
Weighted Average Cost of Capital
13.66%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
98.83%
Pre-Tax Cost of Debt125.10%
Tax Rate21.00%
Tax Shield26.27%
Capital Structure
Equity: 95.01%($11.77B)
Debt: 4.99%($617.86M)
Equity Component
8.73%
95.01% × 9.19%
Debt Component
4.93%
4.99% × 98.83%

Stifel Financial Corp. (SF) WACC in context

Stifel Financial Corp. (SF) currently screens with an estimated WACC of 13.66%. That blends a 9.19% cost of equity, a 125.10% pre-tax cost of debt, and a 95.01% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What SF WACC implies

A 13.66% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates SF

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 95.01% 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.