Artisan Partners Asset ManagementAPAM +2.10%80 WACC % is 12.8% as of Jun. 27, 2026, which is 3% above its 10-year median of 12.47. GuruFocus rates APAM with a GF Score™ of 80/100 and a GF Value™ of $47.32 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,653 Asset Management companies, Artisan Partners Asset Management ranks worse than 91.95% on this metric.
As of today (2026-06-27), Artisan Partners Asset Management's weighted average cost of capital is 12.8%%. Artisan Partners Asset Management's ROIC % is 27.81% (calculated using TTM income statement data).
Artisan Partners Asset Management generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
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, Artisan Partners Asset Management's weighted average cost of capital is 12.8%%. Artisan Partners Asset Management's ROIC % is 27.81% (calculated using TTM income statement data).
Artisan Partners Asset Management generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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
Artisan Partners Asset Management 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 Asset Management subindustry, Artisan Partners Asset Management'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.
Artisan Partners Asset Management WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Artisan Partners Asset Management's WACC % distribution charts can be found below:
* The bar in red indicates where Artisan Partners Asset Management'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, Artisan Partners Asset Management's market capitalization (E) is $2525.230 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, Artisan Partners Asset Management's latest one-year quarterly average Book Value of Debt (D) is $305.5006 Mil.
a) weight of equity = E / (E + D) = 2525.230 / (2525.230 + 305.5006) = 0.8921
b) weight of debt = D / (E + D) = 305.5006 / (2525.230 + 305.5006) = 0.1079
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. Artisan Partners Asset Management's beta is 1.6183.
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% + 1.6183 * 6% = 14.0858%
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, Artisan Partners Asset Management's interest expense (positive number) was $8.593 Mil. Its total Book Value of Debt (D) is $305.5006 Mil.
Cost of Debt = 8.593 / 305.5006 = 2.8128%.
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 = 110.009 / 478.171 = 23.01%.
* 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.
Artisan Partners Asset Management (APAM) has a WACC % of 12.8% 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 Artisan Partners Asset Management and its competitors. This is near median its historical median of 12.47. Over the past decade, Artisan Partners Asset Management's WACC % has ranged from 11.08 to 15.30. According to the industry distribution chart, Artisan Partners Asset Management ranks #1520 out of 1653 companies in the Asset Management industry, placing it in the top 92%.
Is Artisan Partners Asset Management's WACC % too high?
Artisan Partners Asset Management's current WACC % of 12.8% is near median its 10-year median of 12.47. Over the past 10 years, this metric has ranged from a low of 11.08 to a high of 15.30. The Asset Management industry median WACC % is 5.68. Artisan Partners Asset Management's value of 12.8% is 125.4% above this industry median. Based on the distribution chart, Artisan Partners Asset Management ranks #1520 out of 1653 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Artisan Partners Asset Management has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Artisan Partners Asset Management's WACC % compare to NVG and AAMI?
According to the Asset Management industry distribution chart, Artisan Partners Asset Management ranks #1520 out of 1653 companies for WACC %. This places Artisan Partners Asset Management in the lower half of its industry. The industry median WACC % is 5.68. Artisan Partners Asset Management's value of 12.8% is 125.4% above this benchmark. Historically, Artisan Partners Asset Management's own WACC % has ranged from 11.08 to 15.30 over the past decade. While the company's 10-year median is 12.47 vs. the industry median of 5.68, Artisan Partners Asset Management has consistently been above 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 an Asset Management company?
The median WACC % among Asset Management companies is 5.68, based on 1,653 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. Artisan Partners Asset Management's current WACC % of 12.8% is 125.4% above 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 Artisan Partners Asset Management and its competitors. For the Asset Management industry, the median WACC % is 5.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Artisan Partners Asset Management's current WACC % is 12.8%, which is near median its own 10-year median of 12.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Artisan Partners Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Artisan Partners Asset Management (APAM) is currently considered Modestly Undervalued. The stock's GF Value™ is $47.32, compared to a current price of $35.57 — trading 24.8% below its estimated fair value. The current WACC % is 12.8%, which is near median its 10-year median of 12.47 and 125.4% above the Asset Management industry median of 5.68. Artisan Partners Asset Management's overall GF Score™ is 80/100 with 3 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 Artisan Partners Asset Management (APAM), the current WACC % is 12.8% 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 Artisan Partners Asset Management (APAM) Overvalued in 2026?
Based on GuruFocus' analysis, Artisan Partners Asset Management stock appears to be undervalued.
The current stock price of $35.57 is trading 24.8% below its estimated GF Value™ of $47.32.
GuruFocus considers Artisan Partners Asset Management to be Modestly Undervalued.
Key valuation signals for APAM:
WACC %: 12.8% (near median its 10-year median of 12.47)
GF Value™: $47.32 vs. price of $35.57 (24.8% below fair value)
Industry Position: 125.4% above the Asset Management median (#1520 of 1653)
No single metric tells the full story. See the APAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Artisan Partners Asset Management Business Description
Artisan Partners Asset Management Inc is a investment management firm providing a range of investment strategies to a diverse group of clients around the world. Each of the company's strategies is managed by one of its several investment teams. Investment management services are offered to institutions through separate accounts and mutual funds. Artisan's investment offerings include several long-only, equity investment strategies across a multitude of market capitalization segments and investing styles in both the United States and international markets. The company operates as one segment in the investment management business. The company generates maximum portion of its revenues from clients domiciled in countries outside the United States.
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