First Atlantic BankXGHA:FAB 24 WACC % is 20.4% as of Jun. 25, 2026, which is 95% below its 10-year median of 407.45. GuruFocus rates XGHA:FAB with a GF Score™ of 24/100. Among 1,542 Banks companies, First Atlantic Bank ranks worse than 79.31% on this metric.
As of today (2026-06-25), First Atlantic Bank's weighted average cost of capital is 20.4%%. First Atlantic Bank's ROIC % is 0.00% (calculated using TTM income statement data).
First Atlantic Bank earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*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.
First Atlantic Bank (XGHA:FAB) 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, First Atlantic Bank's weighted average cost of capital is 20.4%%. First Atlantic Bank's ROIC % is 0.00% (calculated using TTM income statement data).
First Atlantic Bank earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*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 annual 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 annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
First Atlantic Bank WACC % Historical Data
* Premium members only.
The historical data trend for First Atlantic Bank's WACC % can be seen below:
* 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.
First Atlantic Bank WACC % Chart
First Atlantic Bank Annual Data
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Dec25
WACC %
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First Atlantic Bank Semi-Annual Data
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Dec25
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XGHA:FAB vs PNC: WACC % Comparison
For the Banks - Regional subindustry, First Atlantic Bank'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.
First Atlantic Bank WACC % vs Banks Industry
For the Banks industry and Financial Services sector, First Atlantic Bank's WACC % distribution charts can be found below:
* The bar in red indicates where First Atlantic Bank'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, First Atlantic Bank's market capitalization (E) is GHS3177.142 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 annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, First Atlantic Bank's latest one-year annual average Book Value of Debt (D) is GHS31.5615 Mil.
a) weight of equity = E / (E + D) = 3177.142 / (3177.142 + 31.5615) = 0.9902
b) weight of debt = D / (E + D) = 31.5615 / (3177.142 + 31.5615) = 0.0098
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 4.39%. 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. First Atlantic Bank'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 = 4.39% + 1 * 6% = 10.39%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Dec. 2025, First Atlantic Bank's interest expense (positive number) was GHS474.228 Mil. Its total Book Value of Debt (D) is GHS31.5615 Mil.
Cost of Debt = 474.228 / 31.5615 = 1502.5522%.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual 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 annual Tax Rate = 220.123 / 702.994 = 31.31%.
First Atlantic Bank's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9902
*
10.39%
+
0.0098
*
1502.5522%
*
(1 - 31.31%)
=
20.4%
* 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.
First Atlantic Bank (XGHA:FAB) has a WACC % of 20.4% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on First Atlantic Bank and its competitors. This is 95% below median its historical median of 407.45. Over the past decade, First Atlantic Bank's WACC % has ranged from 20.47 to 793.80. According to the industry distribution chart, First Atlantic Bank ranks #1223 out of 1542 companies in the Banks industry, placing it in the top 79.3%.
Is First Atlantic Bank's WACC % too high?
First Atlantic Bank's current WACC % of 20.4% is 95% below median its 10-year median of 407.45. Over the past 10 years, this metric has ranged from a low of 20.47 to a high of 793.80. The Banks industry median WACC % is 13.20. First Atlantic Bank's value of 20.4% is 54.5% above this industry median. Based on the distribution chart, First Atlantic Bank ranks #1223 out of 1542 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, First Atlantic Bank has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does First Atlantic Bank's WACC % compare to PNC?
According to the Banks industry distribution chart, First Atlantic Bank ranks #1223 out of 1542 companies for WACC %. This places First Atlantic Bank in the lower half of its industry. The industry median WACC % is 13.20. First Atlantic Bank's value of 20.4% is 54.5% above this benchmark. Historically, First Atlantic Bank's own WACC % has ranged from 20.47 to 793.80 over the past decade. While the company's 10-year median is 407.45 vs. the industry median of 13.20, First Atlantic Bank 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 a Banks company?
The median WACC % among Banks companies is 13.20, based on 1,542 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. First Atlantic Bank's current WACC % of 20.4% is 54.5% 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 First Atlantic Bank and its competitors. For the Banks industry, the median WACC % is 13.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Atlantic Bank's current WACC % is 20.4%, which is 95% below median its own 10-year median of 407.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Atlantic Bank stock overvalued right now?
First Atlantic Bank (XGHA:FAB) has a current WACC % of 20.4%. The current WACC % is 20.4%, which is 95% below median its 10-year median of 407.45 and 54.5% above the Banks industry median of 13.20. First Atlantic Bank's overall GF Score™ is 24/100. 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 First Atlantic Bank (XGHA:FAB), the current WACC % is 20.4% as of Jun. 25, 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.
First Atlantic Bank PLC is engaged in providing banking services that include personal banking, corporate banking, digital banking, prestige banking, and others. The Group's portfolio consists of loans and investments segmented across five main portfolios: Corporate Loans, Retail Loans, Retail Controller Loans, SME loans & Investments. The Group comprises the following main business segments: Corporate Banking, Retail and business banking, and Global markets. It generates majority of its income from Global markets segment which undertake the Group's funding and risk management activities through borrowings, issues of debt securities and investing in liquid assets such as short-term placements and corporate and government debt securities.
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