Question 1

What is Truist Financial Corporation's WACC?

Accepted Answer

Truist Financial Corporation (TFC) has a Weighted Average Cost of Capital (WACC) of 10.26%. This is calculated using a Cost of Equity of 9.01% (via CAPM with a beta of 1.11) and a pre-tax Cost of Debt of 14.33%, with an equity weight of 45.81% in the capital structure.

Question 2

Is Truist Financial Corporation's WACC high or low?

Accepted Answer

Truist Financial Corporation's WACC of 10.26% falls within the typical 8-12% range for mid-cap growth companies. 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 Truist Financial Corporation's WACC calculated?

Accepted Answer

Truist Financial Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.01% is derived from the CAPM model using a beta of 1.11. The pre-tax Cost of Debt (Rd) is 14.33%. The capital structure is 45.81% equity and 54.19% debt.

Truist Financial Corporation (TFC) — WACC 分析

WACC 构成

解读

Truist Financial Corporation（TFC）WACC：10.26%

WACC计算器

Truist Financial Corporation（TFC） WACC 解读

TFC 公司分析

TFC DCF 估值

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