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Brookfield Wealth Solutions Ltd. (BNT) — WACC Analysis

WACC Breakdown

Brookfield Wealth Solutions Ltd. (BNT) has a weighted average cost of capital (WACC) of 12.2%. The cost of equity is 10.0%, derived from a beta of 1.39 and a risk-free rate of 4.7%. The after-tax cost of debt is 146.1%. The capital structure is 98.4% equity and 1.6% debt.

Interpretation

A WACC of 12.2% indicates that the market perceives Brookfield Wealth Solutions Ltd. as higher-risk, requiring a greater return to compensate investors.

Investors can compare BNT's WACC of 12.2% against industry peers to gauge its relative financing costs. A beta of 1.39 reflects the stock's volatility relative to the broader market.

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VALUATION

BNT WACC: 12.23% for Brookfield Wealth Solutions Ltd.

Current inputs imply a 10.00% cost of equity and a 184.88% 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

Brookfield Wealth Solutions Ltd. Common Stock (BNT) WACC Results
Weighted Average Cost of Capital
12.23%
Cost of Equity
10.00%
Risk-Free Rate4.67%
Beta1.39
Market Risk Premium4.23%
Cost of Debt
146.05%
Pre-Tax Cost of Debt184.88%
Tax Rate21.00%
Tax Shield38.82%
Capital Structure
Equity: 98.36%($12.30B)
Debt: 1.64%($205.00M)
Equity Component
9.84%
98.36% × 10.00%
Debt Component
2.39%
1.64% × 146.05%

Brookfield Wealth Solutions Ltd. (BNT) WACC in context

Brookfield Wealth Solutions Ltd. (BNT) currently screens with an estimated WACC of 12.23%. That blends a 10.00% cost of equity, a 184.88% pre-tax cost of debt, and a 98.36% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What BNT WACC implies

A 12.23% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates BNT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.39 and equity accounts for 98.36% 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.