PFG
Principal Financial Group Inc
Price:  
87.09 
USD
Volume:  
559,612.00
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 8.0%.

The Cost of Equity of Principal Financial Group Inc (PFG) is 8.75%.
The Cost of Debt of Principal Financial Group Inc (PFG) is 5.00%.

Range Selected
Cost of equity 7.20% - 10.30% 8.75%
Tax rate 14.80% - 15.20% 15.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 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 0.71 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 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 6.7% 9.2%
Selected WACC 8.0%