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Provident Financial Hldgs (PROV) — WACC Analysis

WACC Breakdown

Provident Financial Hldgs (PROV) has a weighted average cost of capital (WACC) of 4.7%. The cost of equity is 6.6%, derived from a beta of 0.18 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.6%. The capital structure is 38.4% equity and 61.6% debt.

Interpretation

A WACC of 4.7% suggests that the market views Provident Financial Hldgs as relatively low-risk, with a lower cost of financing.

Investors can compare PROV's WACC of 4.7% against industry peers to gauge its relative financing costs. A beta of 0.18 reflects the stock's volatility relative to the broader market.

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VALUATION

PROV WACC: 4.75% for Provident Financial Hldgs

Current inputs imply a 6.59% cost of equity and a 4.55% 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
[03]
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

Provident Financial Hldgs Common Stock (PROV) WACC Results
Weighted Average Cost of Capital
4.75%
Cost of Equity
6.59%
Risk-Free Rate4.67%
Beta0.18
Market Risk Premium4.23%
Cost of Debt
3.60%
Pre-Tax Cost of Debt4.55%
Tax Rate21.00%
Tax Shield0.96%
Capital Structure
Equity: 38.40%($114.76M)
Debt: 61.60%($184.05M)
Equity Component
2.53%
38.40% × 6.59%
Debt Component
2.22%
61.60% × 3.60%

Provident Financial Hldgs (PROV) WACC in context

Provident Financial Hldgs (PROV) currently screens with an estimated WACC of 4.75%. That blends a 6.59% cost of equity, a 4.55% pre-tax cost of debt, and a 38.40% 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 PROV WACC implies

A 4.75% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates PROV

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.18 and equity accounts for 38.40% 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.