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Associated Banc-Corp (ASB) — WACC Analysis

WACC Breakdown

Associated Banc-Corp (ASB) has a weighted average cost of capital (WACC) of 18.9%. The cost of equity is 9.3%, derived from a beta of 1.03 and a risk-free rate of 5.0%. The after-tax cost of debt is 67.7%. The capital structure is 83.5% equity and 16.5% debt.

Interpretation

A WACC of 18.9% indicates that the market perceives Associated Banc-Corp as higher-risk, requiring a greater return to compensate investors.

Investors can compare ASB's WACC of 18.9% against industry peers to gauge its relative financing costs. A beta of 1.03 reflects the stock's volatility relative to the broader market.

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VALUATION

ASB WACC: 18.93% for Associated Banc-Corp

Current inputs imply a 9.27% cost of equity and a 85.67% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Associated Banc-Corp Common Stock (ASB) WACC Results
Weighted Average Cost of Capital
18.93%
Cost of Equity
9.27%
Risk-Free Rate4.96%
Beta1.03
Market Risk Premium4.23%
Cost of Debt
67.68%
Pre-Tax Cost of Debt85.67%
Tax Rate21.00%
Tax Shield17.99%
Capital Structure
Equity: 83.46%($5654.16M)
Debt: 16.54%($1120.36M)
Equity Component
7.74%
83.46% × 9.27%
Debt Component
11.19%
16.54% × 67.68%

Associated Banc-Corp (ASB) WACC in context

Associated Banc-Corp (ASB) currently screens with an estimated WACC of 18.93%. That blends a 9.27% cost of equity, a 85.67% pre-tax cost of debt, and a 83.46% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What ASB WACC implies

A 18.93% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates ASB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.03 and equity accounts for 83.46% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.