Question 1

What is First American Financial Corporation's WACC?

Accepted Answer

First American Financial Corporation (FAF) has a Weighted Average Cost of Capital (WACC) of 8.65%. This is calculated using a Cost of Equity of 8.71% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 10.59%, with an equity weight of 81.39% in the capital structure.

Question 2

Is First American Financial Corporation's WACC high or low?

Accepted Answer

First American Financial Corporation's WACC of 8.65% falls within the typical 8-12% range for mid-cap growth companies. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is First American Financial Corporation's WACC calculated?

Accepted Answer

First American Financial Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.71% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 10.59%. The capital structure is 81.39% equity and 18.61% debt.

First American Financial Corporation (FAF) — WACC 分析

WACC 构成

解读

First American Financial Corporation（FAF）WACC：8.65%

WACC计算器

First American Financial Corporation（FAF） WACC 解读

FAF 公司分析

FAF DCF 估值

继续做同行对比