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The Western Union Company (WU) — WACC Analysis

WACC Breakdown

The Western Union Company (WU) has a weighted average cost of capital (WACC) of 6.0%. The cost of equity is 8.2%, derived from a beta of 0.65 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.4%. The capital structure is 41.8% equity and 58.2% debt.

Interpretation

A WACC of 6.0% suggests that the market views The Western Union Company as relatively low-risk, with a lower cost of financing.

Investors can compare WU's WACC of 6.0% against industry peers to gauge its relative financing costs. A beta of 0.65 reflects the stock's volatility relative to the broader market.

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VALUATION

WU WACC: 5.98% for The Western Union Company

Current inputs imply a 8.22% cost of equity and a 5.54% 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
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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

The Western Union Company Common Stock (WU) WACC Results
Weighted Average Cost of Capital
5.98%
Cost of Equity
8.22%
Risk-Free Rate4.98%
Beta0.65
Market Risk Premium4.23%
Cost of Debt
4.38%
Pre-Tax Cost of Debt5.54%
Tax Rate21.00%
Tax Shield1.16%
Capital Structure
Equity: 41.80%($1936.77M)
Debt: 58.20%($2697.20M)
Equity Component
3.44%
41.80% × 8.22%
Debt Component
2.55%
58.20% × 4.38%

The Western Union Company (WU) WACC in context

The Western Union Company (WU) currently screens with an estimated WACC of 5.98%. That blends a 8.22% cost of equity, a 5.54% pre-tax cost of debt, and a 41.80% 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 WU WACC implies

A 5.98% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates WU

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.65 and equity accounts for 41.80% 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.