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PNC Financial Services Group (PNC) — WACC Analysis

WACC Breakdown

PNC Financial Services Group (PNC) has a weighted average cost of capital (WACC) of 6.1%. The cost of equity is 8.8%, derived from a beta of 0.94 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.1%. The capital structure is 53.1% equity and 46.9% debt.

Interpretation

A WACC of 6.1% suggests that the market views PNC Financial Services Group as relatively low-risk, with a lower cost of financing.

Investors can compare PNC's WACC of 6.1% against industry peers to gauge its relative financing costs. A beta of 0.94 reflects the stock's volatility relative to the broader market.

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VALUATION

PNC WACC: 6.11% for PNC Financial Services Group

Current inputs imply a 8.80% cost of equity and a 3.89% 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

PNC Financial Services Group Common Stock (PNC) WACC Results
Weighted Average Cost of Capital
6.11%
Cost of Equity
8.80%
Risk-Free Rate4.74%
Beta0.94
Market Risk Premium4.23%
Cost of Debt
3.08%
Pre-Tax Cost of Debt3.89%
Tax Rate21.00%
Tax Shield0.82%
Capital Structure
Equity: 53.08%($97.00B)
Debt: 46.92%($85.72B)
Equity Component
4.67%
53.08% × 8.80%
Debt Component
1.44%
46.92% × 3.08%

PNC Financial Services Group (PNC) WACC in context

PNC Financial Services Group (PNC) currently screens with an estimated WACC of 6.11%. That blends a 8.80% cost of equity, a 3.89% pre-tax cost of debt, and a 53.08% 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 PNC WACC implies

A 6.11% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates PNC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.94 and equity accounts for 53.08% 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.