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Truist Financial Corporation (TFC) — WACC Analysis

WACC Breakdown

Truist Financial Corporation (TFC) has a weighted average cost of capital (WACC) of 10.3%. The cost of equity is 9.2%, derived from a beta of 1.07 and a risk-free rate of 4.7%. The after-tax cost of debt is 11.3%. The capital structure is 46.7% equity and 53.3% debt.

Interpretation

A WACC of 10.3% is moderate, reflecting the market's balanced risk assessment of Truist Financial Corporation.

Investors can compare TFC's WACC of 10.3% against industry peers to gauge its relative financing costs. A beta of 1.07 reflects the stock's volatility relative to the broader market.

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VALUATION

TFC WACC: 10.31% for Truist Financial Corporation

Current inputs imply a 9.16% cost of equity and a 14.33% 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

Truist Financial Corporation Common Stock (TFC) WACC Results
Weighted Average Cost of Capital
10.31%
Cost of Equity
9.16%
Risk-Free Rate4.73%
Beta1.07
Market Risk Premium4.23%
Cost of Debt
11.32%
Pre-Tax Cost of Debt14.33%
Tax Rate21.00%
Tax Shield3.01%
Capital Structure
Equity: 46.72%($60.57B)
Debt: 53.28%($69.06B)
Equity Component
4.28%
46.72% × 9.16%
Debt Component
6.03%
53.28% × 11.32%

Truist Financial Corporation (TFC) WACC in context

Truist Financial Corporation (TFC) currently screens with an estimated WACC of 10.31%. That blends a 9.16% cost of equity, a 14.33% pre-tax cost of debt, and a 46.72% 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 TFC WACC implies

A 10.31% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates TFC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.07 and equity accounts for 46.72% 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.