PB
Prosperity Bancshares Inc
Price:  
72.80 
USD
Volume:  
995,086.00
United States | Banks
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PB WACC - Weighted Average Cost of Capital

The WACC of Prosperity Bancshares Inc (PB) is 7.9%.

The Cost of Equity of Prosperity Bancshares Inc (PB) is 10.25%.
The Cost of Debt of Prosperity Bancshares Inc (PB) is 5.00%.

Range Selected
Cost of equity 8.20% - 12.30% 10.25%
Tax rate 21.00% - 21.30% 21.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 9.1% 7.9%
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 0.94 1.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 12.30%
Tax rate 21.00% 21.30%
Debt/Equity ratio 0.62 0.62
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 9.1%
Selected WACC 7.9%