THG
Hanover Insurance Group Inc
Price:  
123.71 
USD
Volume:  
349,880.00
United States | Insurance
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

THG WACC - Weighted Average Cost of Capital

The WACC of Hanover Insurance Group Inc (THG) is 7.5%.

The Cost of Equity of Hanover Insurance Group Inc (THG) is 8.15%.
The Cost of Debt of Hanover Insurance Group Inc (THG) is 5.00%.

Range Selected
Cost of equity 6.80% - 9.50% 8.15%
Tax rate 18.60% - 18.70% 18.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 8.6% 7.5%
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 0.62 0.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.50%
Tax rate 18.60% 18.70%
Debt/Equity ratio 0.18 0.18
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 8.6%
Selected WACC 7.5%