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Pentair plc (PNR) — WACC Analysis

WACC Breakdown

Pentair plc (PNR) has a weighted average cost of capital (WACC) of 8.4%. The cost of equity is 9.7%, derived from a beta of 1.10 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.8%. The capital structure is 81.1% equity and 18.9% debt.

Interpretation

A WACC of 8.4% is moderate, reflecting the market's balanced risk assessment of Pentair plc.

Investors can compare PNR's WACC of 8.4% against industry peers to gauge its relative financing costs. A beta of 1.10 reflects the stock's volatility relative to the broader market.

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VALUATION

PNR WACC: 8.43% for Pentair plc

Current inputs imply a 9.73% cost of equity and a 3.59% 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

Pentair plc Common Stock (PNR) WACC Results
Weighted Average Cost of Capital
8.43%
Cost of Equity
9.73%
Risk-Free Rate5.22%
Beta1.10
Market Risk Premium4.23%
Cost of Debt
2.84%
Pre-Tax Cost of Debt3.59%
Tax Rate21.00%
Tax Shield0.75%
Capital Structure
Equity: 81.12%($8351.87M)
Debt: 18.88%($1944.30M)
Equity Component
7.89%
81.12% × 9.73%
Debt Component
0.54%
18.88% × 2.84%

Pentair plc (PNR) WACC in context

Pentair plc (PNR) currently screens with an estimated WACC of 8.43%. That blends a 9.73% cost of equity, a 3.59% pre-tax cost of debt, and a 81.12% 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 PNR WACC implies

A 8.43% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PNR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.10 and equity accounts for 81.12% 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.