Kinsale Capital Group Inc (KNSL) WACC Analysis

As of June 4, 2025, Kinsale Capital Group Inc (KNSL) carries a Weighted Average Cost of Capital (WACC) of 7.9%. WACC reflects the blended rate Kinsale Capital Group Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.9%, the cost of debt is 5.0%, and the effective tax rate is 18.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.65 – 0.75
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.02

What It Means for Investors

With a selected WACC of 7.9%, Kinsale Capital Group Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.