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Huntington Bancshares Inc (HBAN) — WACC Analysis

WACC Breakdown

Huntington Bancshares Inc (HBAN) has a weighted average cost of capital (WACC) of 11.5%. The cost of equity is 9.1%, derived from a beta of 1.06 and a risk-free rate of 4.7%. The after-tax cost of debt is 15.0%. The capital structure is 59.3% equity and 40.7% debt.

Interpretation

A WACC of 11.5% is moderate, reflecting the market's balanced risk assessment of Huntington Bancshares Inc.

Investors can compare HBAN's WACC of 11.5% against industry peers to gauge its relative financing costs. A beta of 1.06 reflects the stock's volatility relative to the broader market.

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VALUATION

HBAN WACC: 11.51% for Huntington Bancshares Inc

Current inputs imply a 9.13% cost of equity and a 18.97% 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

Huntington Bancshares Inc Common Stock (HBAN) WACC Results
Weighted Average Cost of Capital
11.51%
Cost of Equity
9.13%
Risk-Free Rate4.73%
Beta1.06
Market Risk Premium4.23%
Cost of Debt
14.98%
Pre-Tax Cost of Debt18.97%
Tax Rate21.00%
Tax Shield3.98%
Capital Structure
Equity: 59.29%($34.19B)
Debt: 40.71%($23.47B)
Equity Component
5.41%
59.29% × 9.13%
Debt Component
6.10%
40.71% × 14.98%

Huntington Bancshares Inc (HBAN) WACC in context

Huntington Bancshares Inc (HBAN) currently screens with an estimated WACC of 11.51%. That blends a 9.13% cost of equity, a 18.97% pre-tax cost of debt, and a 59.29% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What HBAN WACC implies

A 11.51% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates HBAN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.06 and equity accounts for 59.29% 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.