Question 1

What is Citizens Financial Group, Inc.'s WACC?

Accepted Answer

Citizens Financial Group, Inc. (CFG) has a Weighted Average Cost of Capital (WACC) of 13.82%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 33.77%, with an equity weight of 70.88% in the capital structure.

Question 2

Is Citizens Financial Group, Inc.'s WACC high or low?

Accepted Answer

Citizens Financial Group, Inc.'s WACC of 13.82% is above the typical range, indicating higher perceived risk and cost of capital. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Citizens Financial Group, Inc.'s WACC calculated?

Accepted Answer

Citizens Financial Group, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 33.77%. The capital structure is 70.88% equity and 29.12% debt.

Citizens Financial Group, Inc. (CFG) — WACC 分析

WACC 构成

解读

Citizens Financial Group, Inc.（CFG）WACC：13.82%

WACC计算器

Citizens Financial Group, Inc.（CFG） WACC 解读

CFG 公司分析

CFG DCF 估值

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