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Atlantic Union Bankshares Corporation (AUB) — WACC Analysis

WACC Breakdown

Atlantic Union Bankshares Corporation (AUB) has a weighted average cost of capital (WACC) of 14.0%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 28.4%. The capital structure is 75.2% equity and 24.8% debt.

Interpretation

A WACC of 14.0% indicates that the market perceives Atlantic Union Bankshares Corporation as higher-risk, requiring a greater return to compensate investors.

Investors can compare AUB's WACC of 14.0% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

AUB WACC: 13.96% for Atlantic Union Bankshares Corporation

Current inputs imply a 9.19% cost of equity and a 35.98% 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

Atlantic Union Bankshares Corporation Common Stock (AUB) WACC Results
Weighted Average Cost of Capital
13.96%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
28.43%
Pre-Tax Cost of Debt35.98%
Tax Rate21.00%
Tax Shield7.56%
Capital Structure
Equity: 75.20%($5704.03M)
Debt: 24.80%($1881.34M)
Equity Component
6.91%
75.20% × 9.19%
Debt Component
7.05%
24.80% × 28.43%

Atlantic Union Bankshares Corporation (AUB) WACC in context

Atlantic Union Bankshares Corporation (AUB) currently screens with an estimated WACC of 13.96%. That blends a 9.19% cost of equity, a 35.98% pre-tax cost of debt, and a 75.20% 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 AUB WACC implies

A 13.96% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates AUB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 75.20% 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.