Value Sense
UNP
Union Pacific Corporation (UNP)
Last Price$237.8(4.2%)
Market Cap$145.5B
WACC
7.6%
Cost of Equity
9.1%
Cost of Debt
0.8%
Debt to Equity
22.1%
Beta
0.8
Stock quality
6/10
Good
UNP
is 23.0% overvalued
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UNP WACC

Recent WACC calculation

as of Mar 11, 2025
Cost of Equity
% share of Total Capital
9.1%
81.9%
Risk-free rate
4.3%
Beta
1.1
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
0.8%
18.1%
Average Cost of Debt
1.0%
Effective Tax Rate
22.8%
WACC
7.6%

WACC dynamics

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UNP Cost of Equity

Recent Cost of Equity calculation

as of Mar 11, 2025
Risk-free rate
4.3%
Beta
1.1
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
9.1%

Cost of Equity dynamics

UNP vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Union Pacific Corporation logo
Union Pacific CorporationUNP
7.6%
0.5%
112.1%
27.8%
Median Peer Set
7.1%
(0.6%)
36.6%
9.1%
Westinghouse Air Brake Technologies Corporation logo
Westinghouse Air Brake Technologies CorporationWAB
9.4%
7.3%
120.8%
10.2%
FreightCar America, Inc. logo
FreightCar America, Inc.RAIL
9.0%
(1.8%)
(24.4%)
(6.6%)
Norfolk Southern Corporation logo
Norfolk Southern CorporationNSC
8.1%
(0.3%)
44.3%
21.6%
CSX Corporation logo
CSX CorporationCSX
7.8%
(0.8%)
(3.2%)
23.9%
Rail Vision Ltd. logo
Rail Vision Ltd.RVSN
7.7%
(66.3%)
482.4%
(7,850.7%)
L.B. Foster Company logo
L.B. Foster CompanyFSTR
6.5%
(2.4%)
2,764.3%
8.1%
Canadian National Railway Company logo
Canadian National Railway CompanyCNI
6.2%
(0.3%)
(19.3%)
26.1%
Canadian Pacific Railway Limited logo
Canadian Pacific Railway LimitedCP
6.0%
14.0%
(7.0%)
25.6%
The Greenbrier Companies, Inc. logo
The Greenbrier Companies, Inc.GBX
5.3%
(10.3%)
164.1%
4.5%
Trinity Industries, Inc. logo
Trinity Industries, Inc.TRN
3.8%
3.2%
29.0%
4.5%

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FAQ

What is Union Pacific Corporation's discount rate as of Mar 11, 2025?

As of Mar 11, 2025, Union Pacific Corporation's discount rate is 7.61%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Union Pacific Corporation's capital structure and risk profile.

What is Union Pacific Corporation's weighted average cost of capital (WACC)?

Union Pacific Corporation's WACC as of Mar 11, 2025, is 7.61%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Union Pacific Corporation's cost of equity?

Union Pacific Corporation's cost of equity is 9.1%, as of Mar 11, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.