EVR
Evercore Inc
Price:  
213.63 
USD
Volume:  
678,518.00
United States | Capital Markets
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Evercore WACC - Weighted Average Cost of Capital

The WACC of Evercore Inc (EVR) is 8.3%.

The Cost of Equity of Evercore Inc (EVR) is 8.50%.
The Cost of Debt of Evercore Inc (EVR) is 4.45%.

Range Selected
Cost of equity 6.60% - 10.40% 8.50%
Tax rate 22.10% - 22.80% 22.45%
Cost of debt 4.40% - 4.50% 4.45%
WACC 6.5% - 10.1% 8.3%
WACC

Evercore WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.6 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 10.40%
Tax rate 22.10% 22.80%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.40% 4.50%
After-tax WACC 6.5% 10.1%
Selected WACC 8.3%

Evercore'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 Evercore:

cost_of_equity (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.6) + 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.