PFG
Principal Financial Group Inc
Price:  
81.42 
USD
Volume:  
900,827.00
United States | Insurance
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

PFG WACC - Weighted Average Cost of Capital

The WACC of Principal Financial Group Inc (PFG) is 7.2%.

The Cost of Equity of Principal Financial Group Inc (PFG) is 7.80%.
The Cost of Debt of Principal Financial Group Inc (PFG) is 5.00%.

Range Selected
Cost of equity 6.20% - 9.40% 7.80%
Tax rate 14.80% - 15.20% 15.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.9% - 8.5% 7.2%
WACC

PFG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.5 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 9.40%
Tax rate 14.80% 15.20%
Debt/Equity ratio 0.2 0.2
Cost of debt 5.00% 5.00%
After-tax WACC 5.9% 8.5%
Selected WACC 7.2%