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Aflac Inc. (AFL) — WACC Analysis

WACC Breakdown

Aflac Inc. (AFL) has a weighted average cost of capital (WACC) of 6.9%. The cost of equity is 7.6%, derived from a beta of 0.52 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.2%. The capital structure is 87.0% equity and 13.0% debt.

Interpretation

A WACC of 6.9% suggests that the market views Aflac Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare AFL's WACC of 6.9% against industry peers to gauge its relative financing costs. A beta of 0.52 reflects the stock's volatility relative to the broader market.

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VALUATION

AFL WACC: 6.90% for Aflac Inc.

Current inputs imply a 7.61% cost of equity and a 2.74% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Aflac Inc. Common Stock (AFL) WACC Results
Weighted Average Cost of Capital
6.90%
Cost of Equity
7.61%
Risk-Free Rate4.73%
Beta0.52
Market Risk Premium4.23%
Cost of Debt
2.16%
Pre-Tax Cost of Debt2.74%
Tax Rate21.00%
Tax Shield0.57%
Capital Structure
Equity: 87.00%($58.42B)
Debt: 13.00%($8729.00M)
Equity Component
6.62%
87.00% × 7.61%
Debt Component
0.28%
13.00% × 2.16%

Aflac Inc. (AFL) WACC in context

Aflac Inc. (AFL) currently screens with an estimated WACC of 6.90%. That blends a 7.61% cost of equity, a 2.74% pre-tax cost of debt, and a 87.00% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What AFL WACC implies

A 6.90% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates AFL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.52 and equity accounts for 87.00% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

AFL WACC: 6.90% — Aflac Inc. Cost of Capital (September 2026) | DeepViews