THG
Hanover Insurance Group Inc
Price:  
156.31 
USD
Volume:  
207,590.00
United States | Insurance
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THG WACC - Weighted Average Cost of Capital

The WACC of Hanover Insurance Group Inc (THG) is 7.0%.

The Cost of Equity of Hanover Insurance Group Inc (THG) is 7.45%.
The Cost of Debt of Hanover Insurance Group Inc (THG) is 5.00%.

Range Selected
Cost of equity 6.40% - 8.50% 7.45%
Tax rate 18.60% - 18.70% 18.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 8.0% 7.0%
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 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.50%
Tax rate 18.60% 18.70%
Debt/Equity ratio 0.14 0.14
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 8.0%
Selected WACC 7.0%