Proofpoint Inc (PFPT) WACC Analysis

As of June 7, 2025, Proofpoint Inc (PFPT) carries a Weighted Average Cost of Capital (WACC) of 7.2%. WACC reflects the blended rate Proofpoint Inc must pay to both equity and debt holders.

Within that, the cost of equity is 5.7%, the cost of debt is 7.0%, and the effective tax rate is 10.7%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 0.59 – 0.91
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.08

What It Means for Investors

With a selected WACC of 7.2%, Proofpoint Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.