Question 1

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

Accepted Answer

Principal Financial Group, Inc. (PFG) has a Weighted Average Cost of Capital (WACC) of 7.40%. 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 2.00%, with an equity weight of 83.75% in the capital structure.

Question 2

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

Accepted Answer

Principal Financial Group, Inc.'s WACC of 7.40% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. 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 Principal Financial Group, Inc.'s WACC calculated?

Accepted Answer

Principal 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 2.00%. The capital structure is 83.75% equity and 16.25% debt.

Principal Financial Group, Inc. (PFG) — WACC 分析

WACC 构成

解读

Principal Financial Group, Inc.（PFG）WACC：7.40%

WACC计算器

Principal Financial Group, Inc.（PFG） WACC 解读

PFG 公司分析

PFG DCF 估值

继续做同行对比