CASS
Cass Information Systems Inc
Price:  
37.19 
USD
Volume:  
63,526.00
United States | IT Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CASS WACC - Weighted Average Cost of Capital

The WACC of Cass Information Systems Inc (CASS) is 10.4%.

The Cost of Equity of Cass Information Systems Inc (CASS) is 13.90%.
The Cost of Debt of Cass Information Systems Inc (CASS) is 9.80%.

Range Selected
Cost of equity 11.50% - 16.30% 13.90%
Tax rate 18.10% - 19.00% 18.55%
Cost of debt 4.00% - 15.60% 9.80%
WACC 6.6% - 14.1% 10.4%
WACC

CASS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.66 2.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.50% 16.30%
Tax rate 18.10% 19.00%
Debt/Equity ratio 1.46 1.46
Cost of debt 4.00% 15.60%
After-tax WACC 6.6% 14.1%
Selected WACC 10.4%

CASS'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 CASS:

cost_of_equity (13.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.66) + 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.