Brookfield Asset ManagementHAM:RW5 -0.44%42 WACC % is 10.52% as of Jun. 24, 2026, which is 4% below its 10-year median of 10.94. GuruFocus rates HAM:RW5 with a GF Score™ of 42/100 and a GF Value™ of €48.52 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,656 Asset Management companies, Brookfield Asset Management ranks worse than 90.88% on this metric.
As of today (2026-06-24), Brookfield Asset Management's weighted average cost of capital is 10.52%%. Brookfield Asset Management's ROIC % is 19.54% (calculated using TTM income statement data).
Brookfield 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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, Brookfield Asset Management's weighted average cost of capital is 10.52%%. Brookfield Asset Management's ROIC % is 19.54% (calculated using TTM income statement data).
Brookfield 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
Brookfield 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, Brookfield 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.
Brookfield Asset Management WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Brookfield Asset Management's WACC % distribution charts can be found below:
* The bar in red indicates where Brookfield 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, Brookfield Asset Management's market capitalization (E) is €65807.538 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, Brookfield Asset Management's latest one-year quarterly average Book Value of Debt (D) is €2093.1318 Mil.
a) weight of equity = E / (E + D) = 65807.538 / (65807.538 + 2093.1318) = 0.9692
b) weight of debt = D / (E + D) = 2093.1318 / (65807.538 + 2093.1318) = 0.0308
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 4.406%. 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. Brookfield Asset Management's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 = 4.406% + 1 * 6% = 10.406%
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, Brookfield Asset Management's interest expense (positive number) was €358.7 Mil. Its total Book Value of Debt (D) is €2093.1318 Mil.
Cost of Debt = 358.7 / 2093.1318 = 17.137%.
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 = 481.977 / 2609.989 = 18.47%.
* 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.
Brookfield Asset Management (HAM:RW5) has a WACC % of 10.52% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Brookfield Asset Management and its competitors. This is near median its historical median of 10.94. Over the past decade, Brookfield Asset Management's WACC % has ranged from 10.06 to 13.38. According to the industry distribution chart, Brookfield Asset Management ranks #1505 out of 1656 companies in the Asset Management industry, placing it in the top 90.9%.
Is Brookfield Asset Management's WACC % too high?
Brookfield Asset Management's current WACC % of 10.52% is near median its 10-year median of 10.94. Over the past 10 years, this metric has ranged from a low of 10.06 to a high of 13.38. The Asset Management industry median WACC % is 5.74. Brookfield Asset Management's value of 10.52% is 83.3% above this industry median. Based on the distribution chart, Brookfield Asset Management ranks #1505 out of 1656 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Brookfield Asset Management has a GF Score™ of 42/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Brookfield Asset Management's WACC % compare to BLK and BX?
According to the Asset Management industry distribution chart, Brookfield Asset Management ranks #1505 out of 1656 companies for WACC %. This places Brookfield Asset Management in the lower half of its industry. The industry median WACC % is 5.74. Brookfield Asset Management's value of 10.52% is 83.3% above this benchmark. Historically, Brookfield Asset Management's own WACC % has ranged from 10.06 to 13.38 over the past decade. While the company's 10-year median is 10.94 vs. the industry median of 5.74, Brookfield 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 5.74, based on 1,656 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. Brookfield Asset Management's current WACC % of 10.52% is 83.3% 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 Brookfield Asset Management and its competitors. For the Asset Management industry, the median WACC % is 5.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brookfield Asset Management's current WACC % is 10.52%, which is near median its own 10-year median of 10.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brookfield Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Brookfield Asset Management (HAM:RW5) is currently considered Modestly Undervalued. The stock's GF Value™ is €48.52, compared to a current price of €40.71 — trading 16.1% below its estimated fair value. The current WACC % is 10.52%, which is near median its 10-year median of 10.94 and 83.3% above the Asset Management industry median of 5.74. Brookfield Asset Management's overall GF Score™ is 42/100 with 2 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 Brookfield Asset Management (HAM:RW5), the current WACC % is 10.52% as of Jun. 24, 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 Brookfield Asset Management (HAM:RW5) Overvalued in 2026?
Based on GuruFocus' analysis, Brookfield Asset Management stock appears to be undervalued.
The current stock price of €40.71 is trading 16.1% below its estimated GF Value™ of €48.52.
GuruFocus considers Brookfield Asset Management to be Modestly Undervalued.
Key valuation signals for HAM:RW5:
WACC %: 10.52% (near median its 10-year median of 10.94)
GF Value™: €48.52 vs. price of €40.71 (16.1% below fair value)
Industry Position: 83.3% above the Asset Management median (#1505 of 1656)
No single metric tells the full story. See the HAM:RW5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brookfield Asset Management is one of the world's largest alternative-asset managers, with USD 1.181 trillion in total managed assets, including USD 602.7 billion in fee-earning AUM, at the end of 2025. The company has three main business segments: credit strategies (USD 363.0 billion in total AUM and USD 279.4 billion in fee-earning AUM), private equity (USD 155.0 billion/USD 48.0 billion), and real estate/real assets (USD 663.0 billion/USD 275.3 billion). The firm primarily serves institutional investors (90% of AUM) and high-net-worth individuals (10%), and is diversified globally, with 67% of revenue from the Americas, 20% from EMEA, and 13% from Asia-Pacific. Canada-based Brookfield Corp. owns 73% of Brookfield's outstanding Class A shares.
42GF Score
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