PFG
Principal Financial Group Inc
Price:  
72.30 
USD
Volume:  
1,136,387.00
United States | Insurance
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PFG WACC - Weighted Average Cost of Capital

The WACC of Principal Financial Group Inc (PFG) is 9.0%.

The Cost of Equity of Principal Financial Group Inc (PFG) is 10.05%.
The Cost of Debt of Principal Financial Group Inc (PFG) is 5.00%.

Range Selected
Cost of equity 8.60% - 11.50% 10.05%
Tax rate 15.30% - 15.60% 15.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.8% - 10.2% 9.0%
WACC

PFG WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 0.89 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 11.50%
Tax rate 15.30% 15.60%
Debt/Equity ratio 0.23 0.23
Cost of debt 5.00% 5.00%
After-tax WACC 7.8% 10.2%
Selected WACC 9.0%