TRV
Travelers Companies Inc
Price:  
245.14 
USD
Volume:  
1,819,550.00
United States | Insurance
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Travelers WACC - Weighted Average Cost of Capital

The WACC of Travelers Companies Inc (TRV) is 6.4%.

The Cost of Equity of Travelers Companies Inc (TRV) is 6.70%.
The Cost of Debt of Travelers Companies Inc (TRV) is 5.00%.

Range Selected
Cost of equity 5.80% - 7.60% 6.70%
Tax rate 16.00% - 16.50% 16.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.6% - 7.2% 6.4%
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 0.42 0.48
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.60%
Tax rate 16.00% 16.50%
Debt/Equity ratio 0.14 0.14
Cost of debt 5.00% 5.00%
After-tax WACC 5.6% 7.2%
Selected WACC 6.4%