Question 1

What is Prudential Financial, Inc.'s WACC?

Accepted Answer

Prudential Financial, Inc. (PRU) has a Weighted Average Cost of Capital (WACC) of 6.10%. This is calculated using a Cost of Equity of 8.67% (via CAPM with a beta of 0.99) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 63.77% in the capital structure.

Question 2

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

Accepted Answer

Prudential Financial, Inc.'s WACC of 6.10% 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 Prudential Financial, Inc.'s WACC calculated?

Accepted Answer

Prudential Financial, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.67% is derived from the CAPM model using a beta of 0.99. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 63.77% equity and 36.23% debt.

Prudential Financial, Inc. (PRU) — WACC 分析

WACC 构成

解读

Prudential Financial, Inc.（PRU）WACC：6.10%

WACC计算器

Prudential Financial, Inc.（PRU） WACC 解读

PRU 公司分析

PRU DCF 估值

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