The WACC of Velocity Financial Inc (VEL) is 7.7%.
Range | Selected | |
Cost of equity | 13.20% - 16.90% | 15.05% |
Tax rate | 26.60% - 26.70% | 26.65% |
Cost of debt | 4.90% - 12.40% | 8.65% |
WACC | 5.1% - 10.3% | 7.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 2.02 | 2.15 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.20% | 16.90% |
Tax rate | 26.60% | 26.70% |
Debt/Equity ratio | 5.62 | 5.62 |
Cost of debt | 4.90% | 12.40% |
After-tax WACC | 5.1% | 10.3% |
Selected WACC | 7.7% | |