Skip to content

U.S. Bancorp (USB) — WACC Analysis

WACC Breakdown

U.S. Bancorp (USB) has a weighted average cost of capital (WACC) of 12.5%. The cost of equity is 8.9%, derived from a beta of 0.96 and a risk-free rate of 4.7%. The after-tax cost of debt is 18.5%. The capital structure is 62.2% equity and 37.8% debt.

Interpretation

A WACC of 12.5% indicates that the market perceives U.S. Bancorp as higher-risk, requiring a greater return to compensate investors.

Investors can compare USB's WACC of 12.5% against industry peers to gauge its relative financing costs. A beta of 0.96 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

USB WACC: 12.49% for U.S. Bancorp

Current inputs imply a 8.86% cost of equity and a 23.39% 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

U.S. Bancorp Common Stock (USB) WACC Results
Weighted Average Cost of Capital
12.49%
Cost of Equity
8.86%
Risk-Free Rate4.74%
Beta0.96
Market Risk Premium4.23%
Cost of Debt
18.48%
Pre-Tax Cost of Debt23.39%
Tax Rate21.00%
Tax Shield4.91%
Capital Structure
Equity: 62.23%($96.68B)
Debt: 37.77%($58.67B)
Equity Component
5.51%
62.23% × 8.86%
Debt Component
6.98%
37.77% × 18.48%

U.S. Bancorp (USB) WACC in context

U.S. Bancorp (USB) currently screens with an estimated WACC of 12.49%. That blends a 8.86% cost of equity, a 23.39% pre-tax cost of debt, and a 62.23% 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 USB WACC implies

A 12.49% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates USB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.96 and equity accounts for 62.23% 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.

USB WACC: 12.49% — U.S. Bancorp Cost of Capital (August 2026) | DeepViews