STND
Standard AVB Financial Corp
Price:  
33 
USD
Volume:  
13,300
United States | Thrifts & Mortgage Finance

STND WACC - Weighted Average Cost of Capital

The WACC of Standard AVB Financial Corp (STND) is 7.0%.

The Cost of Equity of Standard AVB Financial Corp (STND) is 7.15%.
The Cost of Debt of Standard AVB Financial Corp (STND) is 5%.

RangeSelected
Cost of equity6.2% - 8.1%7.15%
Tax rate20.7% - 23.9%22.3%
Cost of debt5.0% - 5.0%5%
WACC6.1% - 7.9%7.0%
WACC

STND WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.2%5.2%
Adjusted beta0.720.75
Additional risk adjustments0.0%0.5%
Cost of equity6.2%8.1%
Tax rate20.7%23.9%
Debt/Equity ratio
0.040.04
Cost of debt5.0%5.0%
After-tax WACC6.1%7.9%
Selected WACC7.0%

STND'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 STND:

cost_of_equity (7.15%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.72) + 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.