Question 1

What is First Financial Bankshares Inc's WACC?

Accepted Answer

First Financial Bankshares Inc (FFIN) has a Weighted Average Cost of Capital (WACC) of 8.51%. This is calculated using a Cost of Equity of 8.63% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 5.44%, with an equity weight of 97.15% in the capital structure.

Question 2

Is First Financial Bankshares Inc's WACC high or low?

Accepted Answer

First Financial Bankshares Inc's WACC of 8.51% 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 Financial Bankshares Inc's WACC calculated?

Accepted Answer

First Financial Bankshares 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 1.00. The pre-tax Cost of Debt (Rd) is 5.44%. The capital structure is 97.15% equity and 2.85% debt.

First Financial Bankshares Inc (FFIN) — WACC 分析

WACC 构成

解读

First Financial Bankshares Inc（FFIN）WACC：8.51%

WACC计算器

First Financial Bankshares Inc（FFIN） WACC 解读

FFIN 公司分析

FFIN DCF 估值

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