THG
Hanover Insurance Group Inc
Price:  
134.57 
USD
Volume:  
247,145.00
United States | Insurance
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THG WACC - Weighted Average Cost of Capital

The WACC of Hanover Insurance Group Inc (THG) is 6.6%.

The Cost of Equity of Hanover Insurance Group Inc (THG) is 7.00%.
The Cost of Debt of Hanover Insurance Group Inc (THG) is 5.00%.

Range Selected
Cost of equity 5.70% - 8.30% 7.00%
Tax rate 18.60% - 18.70% 18.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.5% - 7.7% 6.6%
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 0.4 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 8.30%
Tax rate 18.60% 18.70%
Debt/Equity ratio 0.16 0.16
Cost of debt 5.00% 5.00%
After-tax WACC 5.5% 7.7%
Selected WACC 6.6%