Skip to content

UMB Financial Corp (UMBF) — WACC Analysis

WACC Breakdown

UMB Financial Corp (UMBF) has a weighted average cost of capital (WACC) of 19.0%. The cost of equity is 9.2%, derived from a beta of 0.99 and a risk-free rate of 5.0%. The after-tax cost of debt is 236.9%. The capital structure is 95.7% equity and 4.3% debt.

Interpretation

A WACC of 19.0% indicates that the market perceives UMB Financial Corp as higher-risk, requiring a greater return to compensate investors.

Investors can compare UMBF's WACC of 19.0% against industry peers to gauge its relative financing costs. A beta of 0.99 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

UMBF WACC: 19.02% for UMB Financial Corp

Current inputs imply a 9.16% cost of equity and a 299.87% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

UMB Financial Corp Common Stock (UMBF) WACC Results
Weighted Average Cost of Capital
19.02%
Cost of Equity
9.16%
Risk-Free Rate4.96%
Beta0.99
Market Risk Premium4.23%
Cost of Debt
236.90%
Pre-Tax Cost of Debt299.87%
Tax Rate21.00%
Tax Shield62.97%
Capital Structure
Equity: 95.67%($10.62B)
Debt: 4.33%($480.13M)
Equity Component
8.77%
95.67% × 9.16%
Debt Component
10.25%
4.33% × 236.90%

UMB Financial Corp (UMBF) WACC in context

UMB Financial Corp (UMBF) currently screens with an estimated WACC of 19.02%. That blends a 9.16% cost of equity, a 299.87% pre-tax cost of debt, and a 95.67% 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 UMBF WACC implies

A 19.02% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates UMBF

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.99 and equity accounts for 95.67% 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.