Question 1

What is Procter & Gamble Company's WACC?

Accepted Answer

Procter & Gamble Company (PG) has a Weighted Average Cost of Capital (WACC) of 7.94%. 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 2.63%, with an equity weight of 90.82% in the capital structure.

Question 2

Is Procter & Gamble Company's WACC high or low?

Accepted Answer

Procter & Gamble Company's WACC of 7.94% 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 Procter & Gamble Company's WACC calculated?

Accepted Answer

Procter & Gamble Company'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 2.63%. The capital structure is 90.82% equity and 9.18% debt.

Procter & Gamble Company (PG) — WACC 分析

WACC 构成

解读

Procter & Gamble Company（PG）WACC：7.94%

WACC计算器

Procter & Gamble Company（PG） WACC 解读

PG 公司分析

PG DCF 估值

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