HURN
Huron Consulting Group Inc
Price:  
148.96 
USD
Volume:  
215,891.00
United States | Professional Services
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HURN WACC - Weighted Average Cost of Capital

The WACC of Huron Consulting Group Inc (HURN) is 7.4%.

The Cost of Equity of Huron Consulting Group Inc (HURN) is 7.85%.
The Cost of Debt of Huron Consulting Group Inc (HURN) is 6.15%.

Range Selected
Cost of equity 6.90% - 8.80% 7.85%
Tax rate 25.00% - 27.40% 26.20%
Cost of debt 5.10% - 7.20% 6.15%
WACC 6.5% - 8.4% 7.4%
WACC

HURN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.66 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 8.80%
Tax rate 25.00% 27.40%
Debt/Equity ratio 0.14 0.14
Cost of debt 5.10% 7.20%
After-tax WACC 6.5% 8.4%
Selected WACC 7.4%

HURN'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 HURN:

cost_of_equity (7.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.66) + 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.