VB.TO
VersaBank
Price:  
14.80 
CAD
Volume:  
7,460.00
Canada | Banks
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VB.TO WACC - Weighted Average Cost of Capital

The WACC of VersaBank (VB.TO) is 7.5%.

The Cost of Equity of VersaBank (VB.TO) is 9.50%.
The Cost of Debt of VersaBank (VB.TO) is 5.00%.

Range Selected
Cost of equity 8.10% - 10.90% 9.50%
Tax rate 27.50% - 27.60% 27.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 8.4% 7.5%
WACC

VB.TO WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 1.01 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.90%
Tax rate 27.50% 27.60%
Debt/Equity ratio 0.52 0.52
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 8.4%
Selected WACC 7.5%