Boston Private Financial Holdings Inc (BPFH) WACC Analysis

As of May 24, 2025, Boston Private Financial Holdings Inc (BPFH) carries a Weighted Average Cost of Capital (WACC) of 7.9%. WACC reflects the blended rate Boston Private Financial Holdings Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.1%, the cost of debt is 5.0%, and the effective tax rate is 27.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 0.94 – 1.06
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.13

What It Means for Investors

With a selected WACC of 7.9%, Boston Private Financial Holdings Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.