ASGN WACC - Weighted Average Cost of Capital
The WACC of ASGN Inc (ASGN) is 7.6%.
| Range | Selected | |
| Cost of equity | 8.1% - 10.6% | 9.35% |
| Tax rate | 26.4% - 26.5% | 26.45% |
| Cost of debt | 4.9% - 5.1% | 5% |
| WACC | 6.7% - 8.5% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.91 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 10.6% |
| Tax rate | 26.4% | 26.5% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 4.9% | 5.1% |
| After-tax WACC | 6.7% | 8.5% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASGN | ASGN Inc | 0.44 | 0.45 | 0.34 |
| ICFI | ICF International Inc | 0.27 | 0.28 | 0.24 |
| KELYA | Kelly Services Inc | 0.59 | 0.51 | 0.35 |
| KFY | Korn Ferry | 0.11 | 0.97 | 0.89 |
| MSI.TO | Morneau Shepell Inc | 0.25 | 0.71 | 0.6 |
| NLSN | Nielsen Holdings PLC | 0.56 | 1.18 | 0.84 |
| NSP | Insperity Inc | 0.15 | 0.77 | 0.69 |
| STN.TO | Stantec Inc | 0.13 | 0.91 | 0.83 |
| TBI | TrueBlue Inc | 0.04 | 1.06 | 1.03 |
| TNET | TriNet Group Inc | 0.25 | 0.9 | 0.76 |
| Low | High | |
| Unlevered beta | 0.66 | 0.79 |
| Relevered beta | 0.87 | 1.04 |
| Adjusted relevered beta | 0.91 | 1.03 |
ASGN's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for ASGN:
cost_of_equity (9.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.91) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.