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VALUATION

WAL WACC: 16.43% for Western Alliance Bancorporation

Current inputs imply a 10.93% cost of equity and a 31.32% 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
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
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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

Western Alliance Bancorporation Common Stock (WAL) WACC Results
Weighted Average Cost of Capital
16.43%
Cost of Equity
10.93%
Risk-Free Rate4.98%
Beta1.61
Market Risk Premium4.23%
Cost of Debt
24.74%
Pre-Tax Cost of Debt31.32%
Tax Rate21.00%
Tax Shield6.58%
Capital Structure
Equity: 60.19%($8488.05M)
Debt: 39.81%($5613.00M)
Equity Component
6.58%
60.19% × 10.93%
Debt Component
9.85%
39.81% × 24.74%

Western Alliance Bancorporation (WAL) WACC in context

Western Alliance Bancorporation (WAL) currently screens with an estimated WACC of 16.43%. That blends a 10.93% cost of equity, a 31.32% pre-tax cost of debt, and a 60.19% 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 WAL WACC implies

A 16.43% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates WAL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.61 and equity accounts for 60.19% 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.