PFG
Principal Financial Group Inc
Price:  
81.53 
USD
Volume:  
1,833,411.00
United States | Insurance
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PFG WACC - Weighted Average Cost of Capital

The WACC of Principal Financial Group Inc (PFG) is 8.0%.

The Cost of Equity of Principal Financial Group Inc (PFG) is 8.80%.
The Cost of Debt of Principal Financial Group Inc (PFG) is 5.00%.

Range Selected
Cost of equity 7.30% - 10.30% 8.80%
Tax rate 14.80% - 15.20% 15.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 9.2% 8.0%
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 0.75 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 10.30%
Tax rate 14.80% 15.20%
Debt/Equity ratio 0.2 0.2
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 9.2%
Selected WACC 8.0%