PB
Prosperity Bancshares Inc
Price:  
58.79 
USD
Volume:  
989,188.00
United States | Banks
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PB WACC - Weighted Average Cost of Capital

The WACC of Prosperity Bancshares Inc (PB) is 7.8%.

The Cost of Equity of Prosperity Bancshares Inc (PB) is 10.65%.
The Cost of Debt of Prosperity Bancshares Inc (PB) is 5.00%.

Range Selected
Cost of equity 8.50% - 12.80% 10.65%
Tax rate 21.00% - 21.30% 21.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 9.0% 7.8%
WACC

PB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.01 1.41
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 12.80%
Tax rate 21.00% 21.30%
Debt/Equity ratio 0.73 0.73
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 9.0%
Selected WACC 7.8%