Question 1

What is First Citizens BancShares Inc's WACC?

Accepted Answer

First Citizens BancShares Inc (FCNCA) has a Weighted Average Cost of Capital (WACC) of 5.14%. This is calculated using a Cost of Equity of 8.63% (via CAPM with a beta of 1.05) and a pre-tax Cost of Debt of 3.67%, with an equity weight of 39.11% in the capital structure.

Question 2

Is First Citizens BancShares Inc's WACC high or low?

Accepted Answer

First Citizens BancShares Inc's WACC of 5.14% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. 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 Citizens BancShares Inc's WACC calculated?

Accepted Answer

First Citizens BancShares Inc's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.63% is derived from the CAPM model using a beta of 1.05. The pre-tax Cost of Debt (Rd) is 3.67%. The capital structure is 39.11% equity and 60.89% debt.

First Citizens BancShares Inc (FCNCA) — WACC 分析

WACC 构成

解读

First Citizens BancShares Inc（FCNCA）WACC：5.14%

WACC计算器

First Citizens BancShares Inc（FCNCA） WACC 解读

FCNCA 公司分析

FCNCA DCF 估值

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