THG
Hanover Insurance Group Inc
Price:  
145.56 
USD
Volume:  
147,355.00
United States | Insurance
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THG WACC - Weighted Average Cost of Capital

The WACC of Hanover Insurance Group Inc (THG) is 7.2%.

The Cost of Equity of Hanover Insurance Group Inc (THG) is 7.65%.
The Cost of Debt of Hanover Insurance Group Inc (THG) is 5.00%.

Range Selected
Cost of equity 6.30% - 9.00% 7.65%
Tax rate 18.60% - 18.70% 18.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.0% - 8.4% 7.2%
WACC

THG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.54 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 9.00%
Tax rate 18.60% 18.70%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.00% 5.00%
After-tax WACC 6.0% 8.4%
Selected WACC 7.2%