PFG
Principal Financial Group Inc
Price:  
78.91 
USD
Volume:  
1,164,381.00
United States | Insurance
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PFG WACC - Weighted Average Cost of Capital

The WACC of Principal Financial Group Inc (PFG) is 7.0%.

The Cost of Equity of Principal Financial Group Inc (PFG) is 7.55%.
The Cost of Debt of Principal Financial Group Inc (PFG) is 5.00%.

Range Selected
Cost of equity 6.40% - 8.70% 7.55%
Tax rate 14.80% - 15.20% 15.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 7.9% 7.0%
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 0.56 0.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.70%
Tax rate 14.80% 15.20%
Debt/Equity ratio 0.21 0.21
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 7.9%
Selected WACC 7.0%