The WACC of Progressive Corp (PGR) is 6.5%.
Range | Selected | |
Cost of equity | 5.80% - 7.50% | 6.65% |
Tax rate | 20.50% - 21.00% | 20.75% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.7% - 7.4% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.41 | 0.47 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.80% | 7.50% |
Tax rate | 20.50% | 21.00% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.7% | 7.4% |
Selected WACC | 6.5% | |