ATH
Athene Holding Ltd
Price:  
83.33 
USD
Volume:  
1,246,360.00
Bermuda | Insurance
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ATH WACC - Weighted Average Cost of Capital

The WACC of Athene Holding Ltd (ATH) is 8.3%.

The Cost of Equity of Athene Holding Ltd (ATH) is 8.70%.
The Cost of Debt of Athene Holding Ltd (ATH) is 5.00%.

Range Selected
Cost of equity 7.50% - 9.90% 8.70%
Tax rate 8.20% - 9.30% 8.75%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.2% - 9.3% 8.3%
WACC

ATH WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.02 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 9.90%
Tax rate 8.20% 9.30%
Debt/Equity ratio 0.12 0.12
Cost of debt 5.00% 5.00%
After-tax WACC 7.2% 9.3%
Selected WACC 8.3%

ATH'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 ATH:

cost_of_equity (8.70%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.02) + 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.