The WACC of Essent Group Ltd (ESNT) is 7.8%.
Range | Selected | |
Cost of equity | 7.00% - 9.00% | 8.00% |
Tax rate | 15.70% - 15.80% | 15.75% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.9% - 8.7% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.69 | 0.74 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.00% | 9.00% |
Tax rate | 15.70% | 15.80% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.9% | 8.7% |
Selected WACC | 7.8% | |