ENBP
ENB Financial Corp
Price:  
17.2 
USD
Volume:  
2,840
United States | Banks

ENBP WACC - Weighted Average Cost of Capital

The WACC of ENB Financial Corp (ENBP) is 6.0%.

The Cost of Equity of ENB Financial Corp (ENBP) is 6.8%.
The Cost of Debt of ENB Financial Corp (ENBP) is 5%.

RangeSelected
Cost of equity5.7% - 7.9%6.8%
Tax rate15.4% - 16.0%15.7%
Cost of debt5.0% - 5.0%5%
WACC5.3% - 6.8%6.0%
WACC

ENBP WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.390.54
Additional risk adjustments0.0%0.5%
Cost of equity5.7%7.9%
Tax rate15.4%16.0%
Debt/Equity ratio
0.410.41
Cost of debt5.0%5.0%
After-tax WACC5.3%6.8%
Selected WACC6.0%

ENBP'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 ENBP:

cost_of_equity (6.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.39) + 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.