Question 1

What is The Allstate Corporation's WACC?

Accepted Answer

The Allstate Corporation (ALL) has a Weighted Average Cost of Capital (WACC) of 6.91%. This is calculated using a Cost of Equity of 7.29% (via CAPM with a beta of 0.50) and a pre-tax Cost of Debt of 5.30%, with an equity weight of 87.69% in the capital structure.

Question 2

Is The Allstate Corporation's WACC high or low?

Accepted Answer

The Allstate Corporation's WACC of 6.91% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is The Allstate Corporation's WACC calculated?

Accepted Answer

The Allstate Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.29% is derived from the CAPM model using a beta of 0.50. The pre-tax Cost of Debt (Rd) is 5.30%. The capital structure is 87.69% equity and 12.31% debt.

The Allstate Corporation (ALL) — WACC 分析

WACC 构成

解读

The Allstate Corporation（ALL）WACC：6.91%

WACC计算器

The Allstate Corporation（ALL） WACC 解读

ALL 公司分析

ALL DCF 估值

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