Federal Agricultural MortgageAGM +0.86%62 WACC % is 3.7% as of Jun. 27, 2026, which is 99% above its 10-year median of 1.86. GuruFocus rates AGM with a GF Score™ of 62/100 and a GF Value™ of $230.35 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 555 Credit Services companies, Federal Agricultural Mortgage ranks better than 78.74% on this metric.
As of today (2026-06-27), Federal Agricultural Mortgage's weighted average cost of capital is 3.7%%. Federal Agricultural Mortgage's ROIC % is 0.00% (calculated using TTM income statement data).
Federal Agricultural Mortgage earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Federal Agricultural Mortgage (NYSE:AGM) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Federal Agricultural Mortgage's weighted average cost of capital is 3.7%%. Federal Agricultural Mortgage's ROIC % is 0.00% (calculated using TTM income statement data).
Federal Agricultural Mortgage earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Federal Agricultural Mortgage WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Federal Agricultural Mortgage's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Federal Agricultural Mortgage WACC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Federal Agricultural Mortgage's WACC % distribution charts can be found below:
* The bar in red indicates where Federal Agricultural Mortgage's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Federal Agricultural Mortgage's market capitalization (E) is $2036.619 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Federal Agricultural Mortgage's latest one-year quarterly average Book Value of Debt (D) is $31971.309 Mil.
a) weight of equity = E / (E + D) = 2036.619 / (2036.619 + 31971.309) = 0.0599
b) weight of debt = D / (E + D) = 31971.309 / (2036.619 + 31971.309) = 0.9401
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.376%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Federal Agricultural Mortgage's beta is 1.2023.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.376% + 1.2023 * 6% = 11.5898%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Federal Agricultural Mortgage's interest expense (positive number) was $1245.603 Mil. Its total Book Value of Debt (D) is $31971.309 Mil.
Cost of Debt = 1245.603 / 31971.309 = 3.896%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 47.134 / 264.021 = 17.85%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Federal Agricultural Mortgage (AGM) has a WACC % of 3.7% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Federal Agricultural Mortgage and its competitors. This is 99% above median its historical median of 1.86. Over the past decade, Federal Agricultural Mortgage's WACC % has ranged from 1.06 to 3.96. According to the industry distribution chart, Federal Agricultural Mortgage ranks #118 out of 555 companies in the Credit Services industry, placing it in the top 21.3%.
Is Federal Agricultural Mortgage's WACC % too high?
Federal Agricultural Mortgage's current WACC % of 3.7% is 99% above median its 10-year median of 1.86. Over the past 10 years, this metric has ranged from a low of 1.06 to a high of 3.96. The Credit Services industry median WACC % is 7.29. Federal Agricultural Mortgage's value of 3.7% is 49.2% below this industry median. Based on the distribution chart, Federal Agricultural Mortgage ranks #118 out of 555 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Federal Agricultural Mortgage has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Federal Agricultural Mortgage's WACC % compare to EZPW and QFIN?
According to the Credit Services industry distribution chart, Federal Agricultural Mortgage ranks #118 out of 555 companies for WACC %. This places Federal Agricultural Mortgage in the top 21% of its industry — outperforming the majority of peers. The industry median WACC % is 7.29. Federal Agricultural Mortgage's value of 3.7% is 49.2% below this benchmark. Historically, Federal Agricultural Mortgage's own WACC % has ranged from 1.06 to 3.96 over the past decade. While the company's 10-year median is 1.86 vs. the industry median of 7.29, Federal Agricultural Mortgage has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Credit Services company?
The median WACC % among Credit Services companies is 7.29, based on 555 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Agricultural Mortgage's current WACC % of 3.7% is 49.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Federal Agricultural Mortgage and its competitors. For the Credit Services industry, the median WACC % is 7.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Agricultural Mortgage's current WACC % is 3.7%, which is 99% above median its own 10-year median of 1.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federal Agricultural Mortgage stock overvalued right now?
Based on GuruFocus' analysis, Federal Agricultural Mortgage (AGM) is currently considered Modestly Undervalued. The stock's GF Value™ is $230.35, compared to a current price of $194.94 — trading 15.4% below its estimated fair value. The current WACC % is 3.7%, which is 99% above median its 10-year median of 1.86 and 49.2% below the Credit Services industry median of 7.29. Federal Agricultural Mortgage's overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Federal Agricultural Mortgage (AGM), the current WACC % is 3.7% as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Federal Agricultural Mortgage (AGM) Overvalued in 2026?
Based on GuruFocus' analysis, Federal Agricultural Mortgage stock appears to be undervalued.
The current stock price of $194.94 is trading 15.4% below its estimated GF Value™ of $230.35.
GuruFocus considers Federal Agricultural Mortgage to be Modestly Undervalued.
Key valuation signals for AGM:
WACC %: 3.7% (99% above median its 10-year median of 1.86)
GF Value™: $230.35 vs. price of $194.94 (15.4% below fair value)
Industry Position: 49.2% below the Credit Services median (#118 of 555)
No single metric tells the full story. See the AGM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Federal Agricultural Mortgage Business Description
Federal Agricultural Mortgage Corp provides agricultural real estate and rural housing mortgage loans in the secondary market in the U.S. Its operations consist of seven reportable segments: Farm & Ranch, which generates maximum revenue, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments. The company purchases eligible mortgage loans secured by first liens on agricultural real estate and rural housing under the Farm & Ranch line of business. Its subsidiary purchases portions of certain agricultural, rural development, business and industry, and community facilities loans guaranteed by the USDA. Geographically, the company's operations are spread across different regions in the United States.
62GF Score
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