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Verisk Analytics, Inc. Common Stock (VRSK) — WACC Analysis

WACC Breakdown

Verisk Analytics, Inc. Common Stock (VRSK) has a weighted average cost of capital (WACC) of 7.0%. The cost of equity is 7.6%, derived from a beta of 0.51 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.3%. The capital structure is 85.7% equity and 14.3% debt.

Interpretation

A WACC of 7.0% suggests that the market views Verisk Analytics, Inc. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare VRSK's WACC of 7.0% against industry peers to gauge its relative financing costs. A beta of 0.51 reflects the stock's volatility relative to the broader market.

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VALUATION

VRSK WACC: 6.97% for Verisk Analytics, Inc. Common Stock

Current inputs imply a 7.58% cost of equity and a 4.22% 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

Verisk Analytics, Inc. Common Stock Common Stock (VRSK) WACC Results
Weighted Average Cost of Capital
6.97%
Cost of Equity
7.58%
Risk-Free Rate4.73%
Beta0.51
Market Risk Premium4.23%
Cost of Debt
3.33%
Pre-Tax Cost of Debt4.22%
Tax Rate21.00%
Tax Shield0.89%
Capital Structure
Equity: 85.67%($25.22B)
Debt: 14.33%($4217.20M)
Equity Component
6.49%
85.67% × 7.58%
Debt Component
0.48%
14.33% × 3.33%

Verisk Analytics, Inc. Common Stock (VRSK) WACC in context

Verisk Analytics, Inc. Common Stock (VRSK) currently screens with an estimated WACC of 6.97%. That blends a 7.58% cost of equity, a 4.22% pre-tax cost of debt, and a 85.67% 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 VRSK WACC implies

A 6.97% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates VRSK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.51 and equity accounts for 85.67% 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.

VRSK Company Analysis

Review profitability, valuation multiples, filings, and business context.

VRSK DCF Valuation

Carry the same discount-rate assumptions into a full DCF model.

Compare against peers

Put the valuation and cost of capital into a peer context.

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.