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Hancock Whitney Corporation Common Stock (HWC) — WACC Analysis

WACC Breakdown

Hancock Whitney Corporation Common Stock (HWC) has a weighted average cost of capital (WACC) of 12.2%. The cost of equity is 9.4%, derived from a beta of 1.06 and a risk-free rate of 5.0%. The after-tax cost of debt is 22.0%. The capital structure is 77.5% equity and 22.5% debt.

Interpretation

A WACC of 12.2% indicates that the market perceives Hancock Whitney Corporation Common Stock as higher-risk, requiring a greater return to compensate investors.

Investors can compare HWC's WACC of 12.2% 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

HWC WACC: 12.20% for Hancock Whitney Corporation Common Stock

Current inputs imply a 9.36% cost of equity and a 27.82% 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

Hancock Whitney Corporation Common Stock Common Stock (HWC) WACC Results
Weighted Average Cost of Capital
12.20%
Cost of Equity
9.36%
Risk-Free Rate4.96%
Beta1.06
Market Risk Premium4.23%
Cost of Debt
21.97%
Pre-Tax Cost of Debt27.82%
Tax Rate21.00%
Tax Shield5.84%
Capital Structure
Equity: 77.49%($6074.49M)
Debt: 22.51%($1764.79M)
Equity Component
7.25%
77.49% × 9.36%
Debt Component
4.95%
22.51% × 21.97%

Hancock Whitney Corporation Common Stock (HWC) WACC in context

Hancock Whitney Corporation Common Stock (HWC) currently screens with an estimated WACC of 12.20%. That blends a 9.36% cost of equity, a 27.82% pre-tax cost of debt, and a 77.49% 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 HWC WACC implies

A 12.20% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates HWC

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 77.49% 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.