Question 1

What is RenaissanceRe Holdings Ltd.'s WACC?

Accepted Answer

RenaissanceRe Holdings Ltd. (RNR) has a Weighted Average Cost of Capital (WACC) of 7.85%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 5.19%, with an equity weight of 84.59% in the capital structure.

Question 2

Is RenaissanceRe Holdings Ltd.'s WACC high or low?

Accepted Answer

RenaissanceRe Holdings Ltd.'s WACC of 7.85% 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 RenaissanceRe Holdings Ltd.'s WACC calculated?

Accepted Answer

RenaissanceRe Holdings Ltd.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 5.19%. The capital structure is 84.59% equity and 15.41% debt.

RenaissanceRe Holdings Ltd. (RNR) — WACC 分析

WACC 构成

解读

RenaissanceRe Holdings Ltd.（RNR）WACC：7.85%

WACC计算器

RenaissanceRe Holdings Ltd.（RNR） WACC 解读

RNR 公司分析

RNR DCF 估值

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