PRU
Prudential Financial Inc
Price:  
97.74 
USD
Volume:  
1,765,003.00
United States | Insurance
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Prudential WACC - Weighted Average Cost of Capital

The WACC of Prudential Financial Inc (PRU) is 8.2%.

The Cost of Equity of Prudential Financial Inc (PRU) is 10.65%.
The Cost of Debt of Prudential Financial Inc (PRU) is 5.00%.

Range Selected
Cost of equity 9.30% - 12.00% 10.65%
Tax rate 19.60% - 20.40% 20.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.3% - 9.0% 8.2%
WACC

Prudential WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 1.02 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 12.00%
Tax rate 19.60% 20.40%
Debt/Equity ratio 0.6 0.6
Cost of debt 5.00% 5.00%
After-tax WACC 7.3% 9.0%
Selected WACC 8.2%