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Procter & Gamble Company (PG) — WACC Analysis

WACC Breakdown

Procter & Gamble Company (PG) has a weighted average cost of capital (WACC) of 8.3%. The cost of equity is 9.0%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.0%. The capital structure is 90.7% equity and 9.3% debt.

Interpretation

A WACC of 8.3% is moderate, reflecting the market's balanced risk assessment of Procter & Gamble Company.

Investors can compare PG's WACC of 8.3% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

PG WACC: 8.32% for Procter & Gamble Company

Current inputs imply a 8.96% cost of equity and a 2.57% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Procter & Gamble Company Common Stock (PG) WACC Results
Weighted Average Cost of Capital
8.32%
Cost of Equity
8.96%
Risk-Free Rate4.73%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
2.03%
Pre-Tax Cost of Debt2.57%
Tax Rate21.00%
Tax Shield0.54%
Capital Structure
Equity: 90.73%($334.21B)
Debt: 9.27%($34.14B)
Equity Component
8.13%
90.73% × 8.96%
Debt Component
0.19%
9.27% × 2.03%

Procter & Gamble Company (PG) WACC in context

Procter & Gamble Company (PG) currently screens with an estimated WACC of 8.32%. That blends a 8.96% cost of equity, a 2.57% pre-tax cost of debt, and a 90.73% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What PG WACC implies

A 8.32% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 90.73% 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.