ERIE
Erie Indemnity Co
Price:  
403.31 
USD
Volume:  
99,474.00
United States | Insurance
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ERIE WACC - Weighted Average Cost of Capital

The WACC of Erie Indemnity Co (ERIE) is 6.4%.

The Cost of Equity of Erie Indemnity Co (ERIE) is 8.85%.
The Cost of Debt of Erie Indemnity Co (ERIE) is 5.00%.

Range Selected
Cost of equity 7.20% - 10.50% 8.85%
Tax rate 20.50% - 20.60% 20.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.6% - 7.2% 6.4%
WACC

ERIE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.72 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 10.50%
Tax rate 20.50% 20.60%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.6% 7.2%
Selected WACC 6.4%