PRU
Prudential Financial Inc
Price:  
114.68 
USD
Volume:  
1,277,490.00
United States | Insurance
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

Prudential WACC - Weighted Average Cost of Capital

The WACC of Prudential Financial Inc (PRU) is 7.5%.

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 7.90% - 10.70% 9.30%
Tax rate 18.50% - 19.20% 18.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 8.5% 7.5%
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 0.88 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.70%
Tax rate 18.50% 19.20%
Debt/Equity ratio 0.52 0.52
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 8.5%
Selected WACC 7.5%