GLRE
Greenlight Capital Re Ltd
Price:  
13.46 
USD
Volume:  
80,301.00
Cayman Islands | Insurance
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GLRE WACC - Weighted Average Cost of Capital

The WACC of Greenlight Capital Re Ltd (GLRE) is 7.2%.

The Cost of Equity of Greenlight Capital Re Ltd (GLRE) is 7.60%.
The Cost of Debt of Greenlight Capital Re Ltd (GLRE) is 5.00%.

Range Selected
Cost of equity 6.50% - 8.70% 7.60%
Tax rate 6.90% - 11.30% 9.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 8.2% 7.2%
WACC

GLRE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.56 0.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 8.70%
Tax rate 6.90% 11.30%
Debt/Equity ratio 0.13 0.13
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 8.2%
Selected WACC 7.2%

GLRE'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 GLRE:

cost_of_equity (7.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.56) + 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.