Question 1

What is The Travelers Companies, Inc.'s WACC?

Accepted Answer

The Travelers Companies, Inc. (TRV) has a Weighted Average Cost of Capital (WACC) of 7.19%. This is calculated using a Cost of Equity of 7.19% (via CAPM with a beta of 0.43) and a pre-tax Cost of Debt of 5.00%, with an equity weight of 100.00% in the capital structure.

Question 2

Is The Travelers Companies, Inc.'s WACC high or low?

Accepted Answer

The Travelers Companies, Inc.'s WACC of 7.19% 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 Travelers Companies, Inc.'s WACC calculated?

Accepted Answer

The Travelers Companies, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.19% is derived from the CAPM model using a beta of 0.43. The pre-tax Cost of Debt (Rd) is 5.00%. The capital structure is 100.00% equity and 0.00% debt.

The Travelers Companies, Inc. (TRV) — WACC 分析

WACC 构成

解读

The Travelers Companies, Inc.（TRV）WACC：7.19%

WACC计算器

The Travelers Companies, Inc.（TRV） WACC 解读

TRV 公司分析

TRV DCF 估值

继续做同行对比