TRV
Travelers Companies Inc
Price:  
233.30 
USD
Volume:  
1,039,678.00
United States | Insurance
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Travelers WACC - Weighted Average Cost of Capital

The WACC of Travelers Companies Inc (TRV) is 6.3%.

The Cost of Equity of Travelers Companies Inc (TRV) is 6.60%.
The Cost of Debt of Travelers Companies Inc (TRV) is 5.00%.

Range Selected
Cost of equity 5.70% - 7.50% 6.60%
Tax rate 16.00% - 16.50% 16.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.5% - 7.0% 6.3%
WACC

Travelers WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.39 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 7.50%
Tax rate 16.00% 16.50%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.00% 5.00%
After-tax WACC 5.5% 7.0%
Selected WACC 6.3%