VEL
Velocity Financial Inc
Price:  
20.71 
USD
Volume:  
51,378.00
United States | Thrifts & Mortgage Finance
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VEL WACC - Weighted Average Cost of Capital

The WACC of Velocity Financial Inc (VEL) is 7.7%.

The Cost of Equity of Velocity Financial Inc (VEL) is 15.05%.
The Cost of Debt of Velocity Financial Inc (VEL) is 8.65%.

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%
WACC

VEL WACC calculation

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%