KRNY
Kearny Financial Corp
Price:  
6.75 
USD
Volume:  
567,298.00
United States | Thrifts & Mortgage Finance
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KRNY WACC - Weighted Average Cost of Capital

The WACC of Kearny Financial Corp (KRNY) is 5.9%.

The Cost of Equity of Kearny Financial Corp (KRNY) is 11.65%.
The Cost of Debt of Kearny Financial Corp (KRNY) is 5.00%.

Range Selected
Cost of equity 8.60% - 14.70% 11.65%
Tax rate 19.60% - 23.40% 21.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.2% - 6.6% 5.9%
WACC

KRNY WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.02 1.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 14.70%
Tax rate 19.60% 23.40%
Debt/Equity ratio 2.88 2.88
Cost of debt 5.00% 5.00%
After-tax WACC 5.2% 6.6%
Selected WACC 5.9%

KRNY'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 KRNY:

cost_of_equity (11.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.02) + 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.