Unum Group (UNM) WACC Analysis

As of April 4, 2026, Unum Group (UNM) carries a Weighted Average Cost of Capital (WACC) of 8.0%. WACC reflects the blended rate Unum Group must pay to both equity and debt holders.

Within that, the cost of equity is 7.9%, the cost of debt is 5.0%, and the effective tax rate is 20.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.88 – 1.01
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.32

What It Means for Investors

With a selected WACC of 8.0%, Unum Group must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.