PRU
Prudential Financial Inc
Price:  
119.36 
USD
Volume:  
1,254,164.00
United States | Insurance
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Prudential WACC - Weighted Average Cost of Capital

The WACC of Prudential Financial Inc (PRU) is 7.3%.

The Cost of Equity of Prudential Financial Inc (PRU) is 8.95%.
The Cost of Debt of Prudential Financial Inc (PRU) is 5.00%.

Range Selected
Cost of equity 7.90% - 10.00% 8.95%
Tax rate 18.50% - 19.20% 18.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 8.0% 7.3%
WACC

Prudential WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.87 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.00%
Tax rate 18.50% 19.20%
Debt/Equity ratio 0.49 0.49
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 8.0%
Selected WACC 7.3%