Question 1

What is FirstService Corporation Common Shares's WACC?

Accepted Answer

FirstService Corporation Common Shares (FSV) has a Weighted Average Cost of Capital (WACC) of 8.36%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 6.81%, with an equity weight of 85.89% in the capital structure.

Question 2

Is FirstService Corporation Common Shares's WACC high or low?

Accepted Answer

FirstService Corporation Common Shares's WACC of 8.36% 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 FirstService Corporation Common Shares's WACC calculated?

Accepted Answer

FirstService Corporation Common Shares's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 6.81%. The capital structure is 85.89% equity and 14.11% debt.

FirstService Corporation Common Shares (FSV) — WACC 分析

WACC 构成

解读

FirstService Corporation Common Shares（FSV）WACC：8.36%

WACC计算器

FirstService Corporation Common Shares（FSV） WACC 解读

FSV 公司分析

FSV DCF 估值

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