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 7.96%. This is calculated using a Cost of Equity of 8.08% (via CAPM with a beta of 0.91) and a pre-tax Cost of Debt of 5.44%, with an equity weight of 96.89% 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 7.96% 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 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 8.08% is derived from the CAPM model using a beta of 0.91. The pre-tax Cost of Debt (Rd) is 5.44%. The capital structure is 96.89% equity and 3.11% debt.

First Financial Bankshares Inc (FFIN) — WACC 分析

WACC 构成

解读

First Financial Bankshares Inc（FFIN）WACC：7.96%

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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