AUB
Atlantic Union Bankshares Corp
Price:  
32.23 
USD
Volume:  
1,314,479.00
United States | Banks
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AUB WACC - Weighted Average Cost of Capital

The WACC of Atlantic Union Bankshares Corp (AUB) is 9.7%.

The Cost of Equity of Atlantic Union Bankshares Corp (AUB) is 10.25%.
The Cost of Debt of Atlantic Union Bankshares Corp (AUB) is 5.00%.

Range Selected
Cost of equity 9.00% - 11.50% 10.25%
Tax rate 16.10% - 16.60% 16.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.6% - 10.8% 9.7%
WACC

AUB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.12 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 11.50%
Tax rate 16.10% 16.60%
Debt/Equity ratio 0.1 0.1
Cost of debt 5.00% 5.00%
After-tax WACC 8.6% 10.8%
Selected WACC 9.7%

AUB'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 AUB:

cost_of_equity (10.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.12) + 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.