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Ameren Corporation (AEE) — WACC Analysis

WACC Breakdown

Ameren Corporation (AEE) has a weighted average cost of capital (WACC) of 5.5%. The cost of equity is 7.0%, derived from a beta of 0.32 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.2%. The capital structure is 59.2% equity and 40.8% debt.

Interpretation

A WACC of 5.5% suggests that the market views Ameren Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare AEE's WACC of 5.5% against industry peers to gauge its relative financing costs. A beta of 0.32 reflects the stock's volatility relative to the broader market.

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VALUATION

AEE WACC: 5.48% for Ameren Corporation

Current inputs imply a 7.04% cost of equity and a 4.08% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Ameren Corporation Common Stock (AEE) WACC Results
Weighted Average Cost of Capital
5.48%
Cost of Equity
7.04%
Risk-Free Rate4.73%
Beta0.32
Market Risk Premium4.23%
Cost of Debt
3.22%
Pre-Tax Cost of Debt4.08%
Tax Rate21.00%
Tax Shield0.86%
Capital Structure
Equity: 59.16%($29.38B)
Debt: 40.84%($20.28B)
Equity Component
4.17%
59.16% × 7.04%
Debt Component
1.32%
40.84% × 3.22%

Ameren Corporation (AEE) WACC in context

Ameren Corporation (AEE) currently screens with an estimated WACC of 5.48%. That blends a 7.04% cost of equity, a 4.08% pre-tax cost of debt, and a 59.16% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What AEE WACC implies

A 5.48% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates AEE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.32 and equity accounts for 59.16% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.