PRU
Prudential Financial Inc
Price:  
113.25 
USD
Volume:  
2,979,251.00
United States | Insurance
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Prudential WACC - Weighted Average Cost of Capital

The WACC of Prudential Financial Inc (PRU) is 7.6%.

The Cost of Equity of Prudential Financial Inc (PRU) is 9.30%.
The Cost of Debt of Prudential Financial Inc (PRU) is 5.00%.

Range Selected
Cost of equity 8.00% - 10.60% 9.30%
Tax rate 18.50% - 19.20% 18.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 8.5% 7.6%
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 0.89 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.60%
Tax rate 18.50% 19.20%
Debt/Equity ratio 0.48 0.48
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 8.5%
Selected WACC 7.6%