Affiliated Managers GroupFRA:AFS 81 WACC % is 8.33% as of Jun. 27, 2026, which is 9% below its 10-year median of 9.19. GuruFocus rates FRA:AFS with a GF Score™ of 81/100 and a GF Value™ of €212.24 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,653 Asset Management companies, Affiliated Managers Group ranks worse than 68.66% on this metric.
As of today (2026-06-27), Affiliated Managers Group's weighted average cost of capital is 8.33%%. Affiliated Managers Group's ROIC % is 4.70% (calculated using TTM income statement data).
Affiliated Managers Group 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.
Affiliated Managers Group (FRA:AFS) 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, Affiliated Managers Group's weighted average cost of capital is 8.33%%. Affiliated Managers Group's ROIC % is 4.70% (calculated using TTM income statement data).
Affiliated Managers Group 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.
* 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, Affiliated Managers Group'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.
Affiliated Managers Group WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Affiliated Managers Group's WACC % distribution charts can be found below:
* The bar in red indicates where Affiliated Managers Group'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, Affiliated Managers Group's market capitalization (E) is €7950.223 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, Affiliated Managers Group's latest one-year quarterly average Book Value of Debt (D) is €2308.0578 Mil.
a) weight of equity = E / (E + D) = 7950.223 / (7950.223 + 2308.0578) = 0.775
b) weight of debt = D / (E + D) = 2308.0578 / (7950.223 + 2308.0578) = 0.225
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. Affiliated Managers Group's beta is 0.8694.
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% + 0.8694 * 6% = 9.5924%
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, Affiliated Managers Group's interest expense (positive number) was €121.047 Mil. Its total Book Value of Debt (D) is €2308.0578 Mil.
Cost of Debt = 121.047 / 2308.0578 = 5.2445%.
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 = 258.227 / 1073.262 = 24.06%.
* 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.
Affiliated Managers Group (FRA:AFS) has a WACC % of 8.33% 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 Affiliated Managers Group and its competitors. This is near median its historical median of 9.19. Over the past decade, Affiliated Managers Group's WACC % has ranged from 7.03 to 12.11. According to the industry distribution chart, Affiliated Managers Group ranks #1135 out of 1653 companies in the Asset Management industry, placing it in the top 68.7%.
Is Affiliated Managers Group's WACC % too high?
Affiliated Managers Group's current WACC % of 8.33% is near median its 10-year median of 9.19. Over the past 10 years, this metric has ranged from a low of 7.03 to a high of 12.11. The Asset Management industry median WACC % is 5.68. Affiliated Managers Group's value of 8.33% is 46.7% above this industry median. Based on the distribution chart, Affiliated Managers Group ranks #1135 out of 1653 companies in the Asset Management industry, which is below the industry midpoint. Overall, Affiliated Managers Group has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Affiliated Managers Group's WACC % compare to JHG and PDI?
According to the Asset Management industry distribution chart, Affiliated Managers Group ranks #1135 out of 1653 companies for WACC %. This places Affiliated Managers Group in the lower half of its industry. The industry median WACC % is 5.68. Affiliated Managers Group's value of 8.33% is 46.7% above this benchmark. Historically, Affiliated Managers Group's own WACC % has ranged from 7.03 to 12.11 over the past decade. While the company's 10-year median is 9.19 vs. the industry median of 5.68, Affiliated Managers Group 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. Affiliated Managers Group's current WACC % of 8.33% is 46.7% 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 Affiliated Managers Group 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. Affiliated Managers Group's current WACC % is 8.33%, which is near median its own 10-year median of 9.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Affiliated Managers Group stock overvalued right now?
Based on GuruFocus' analysis, Affiliated Managers Group (FRA:AFS) is currently considered Significantly Overvalued. The stock's GF Value™ is €212.24, compared to a current price of €298.00 — trading 40.4% above its estimated fair value. The current WACC % is 8.33%, which is near median its 10-year median of 9.19 and 46.7% above the Asset Management industry median of 5.68. Affiliated Managers Group's overall GF Score™ is 81/100 with 8 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 Affiliated Managers Group (FRA:AFS), the current WACC % is 8.33% 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 Affiliated Managers Group (FRA:AFS) Overvalued in 2026?
Based on GuruFocus' analysis, Affiliated Managers Group stock appears to be overvalued.
The current stock price of €298.00 is trading 40.4% above its estimated GF Value™ of €212.24.
GuruFocus considers Affiliated Managers Group to be Significantly Overvalued.
Key valuation signals for FRA:AFS:
WACC %: 8.33% (near median its 10-year median of 9.19)
GF Value™: €212.24 vs. price of €298.00 (40.4% above fair value)
Industry Position: 46.7% above the Asset Management median (#1135 of 1653)
No single metric tells the full story. See the FRA:AFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Affiliated Managers Group offers investment strategies to investors through its network of affiliates. The firm typically buys a majority interest in small to mid-size boutique asset managers, receiving a fixed percentage of revenue from these firms in return. Affiliates operate independently, with AMG providing strategic, operational, and technology support, as well as global distribution. At the end of December 2025, AMG's affiliate network—which includes firms like Abacus Capital and Pantheon dedicated to private markets (which accounted for 18% of AUM), AQR Capital and Capula Investment Management in liquid alternatives (28%), and Harding Loevner, Tweedy Browne, Parnassus, and Yacktman in equities, multi-asset, and bond strategies (54%)—had $813.3 billion in managed assets.
81GF Score
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