PFG
Principal Financial Group Inc
Price:  
83.82 
USD
Volume:  
954,121.00
United States | Insurance
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PFG WACC - Weighted Average Cost of Capital

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

The Cost of Equity of Principal Financial Group Inc (PFG) is 7.90%.
The Cost of Debt of Principal Financial Group Inc (PFG) is 5.00%.

Range Selected
Cost of equity 6.50% - 9.30% 7.90%
Tax rate 14.80% - 15.20% 15.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 8.4% 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 0.57 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 9.30%
Tax rate 14.80% 15.20%
Debt/Equity ratio 0.22 0.22
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 8.4%
Selected WACC 7.2%