HUM
Humana Inc
Price:  
295.53 
USD
Volume:  
1,574,839.00
United States | Health Care Providers & Services
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Humana WACC - Weighted Average Cost of Capital

The WACC of Humana Inc (HUM) is 6.8%.

The Cost of Equity of Humana Inc (HUM) is 7.85%.
The Cost of Debt of Humana Inc (HUM) is 5.00%.

Range Selected
Cost of equity 6.70% - 9.00% 7.85%
Tax rate 21.80% - 23.10% 22.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.0% - 7.7% 6.8%
WACC

Humana WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.61 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.00%
Tax rate 21.80% 23.10%
Debt/Equity ratio 0.33 0.33
Cost of debt 5.00% 5.00%
After-tax WACC 6.0% 7.7%
Selected WACC 6.8%