ASGN
ASGN Inc
Price:  
51.29 
USD
Volume:  
809,034.00
United States | Professional Services
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ASGN WACC - Weighted Average Cost of Capital

The WACC of ASGN Inc (ASGN) is 7.8%.

The Cost of Equity of ASGN Inc (ASGN) is 9.65%.
The Cost of Debt of ASGN Inc (ASGN) is 5.10%.

Range Selected
Cost of equity 8.40% - 10.90% 9.65%
Tax rate 26.40% - 26.50% 26.45%
Cost of debt 4.90% - 5.30% 5.10%
WACC 6.9% - 8.7% 7.8%
WACC

ASGN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 10.90%
Tax rate 26.40% 26.50%
Debt/Equity ratio 0.49 0.49
Cost of debt 4.90% 5.30%
After-tax WACC 6.9% 8.7%
Selected WACC 7.8%

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 (9.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1) + 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.