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The Hartford Insurance Group, Inc. (HIG) — WACC Analysis

WACC Breakdown

The Hartford Insurance Group, Inc. (HIG) has a weighted average cost of capital (WACC) of 7.3%. The cost of equity is 7.8%, derived from a beta of 0.58 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.6%. The capital structure is 89.5% equity and 10.5% debt.

Interpretation

A WACC of 7.3% suggests that the market views The Hartford Insurance Group, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare HIG's WACC of 7.3% against industry peers to gauge its relative financing costs. A beta of 0.58 reflects the stock's volatility relative to the broader market.

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VALUATION

HIG WACC: 7.34% for The Hartford Insurance Group, Inc.

Current inputs imply a 7.78% cost of equity and a 4.55% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

The Hartford Insurance Group, Inc. Common Stock (HIG) WACC Results
Weighted Average Cost of Capital
7.34%
Cost of Equity
7.78%
Risk-Free Rate4.73%
Beta0.58
Market Risk Premium4.23%
Cost of Debt
3.59%
Pre-Tax Cost of Debt4.55%
Tax Rate21.00%
Tax Shield0.96%
Capital Structure
Equity: 89.48%($37.21B)
Debt: 10.52%($4374.00M)
Equity Component
6.96%
89.48% × 7.78%
Debt Component
0.38%
10.52% × 3.59%

The Hartford Insurance Group, Inc. (HIG) WACC in context

The Hartford Insurance Group, Inc. (HIG) currently screens with an estimated WACC of 7.34%. That blends a 7.78% cost of equity, a 4.55% pre-tax cost of debt, and a 89.48% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What HIG WACC implies

A 7.34% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates HIG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.58 and equity accounts for 89.48% 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.