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Dominion Energy, Inc Common Stock (D) — WACC Analysis

WACC Breakdown

Dominion Energy, Inc Common Stock (D) has a weighted average cost of capital (WACC) of 5.6%. The cost of equity is 7.1%, derived from a beta of 0.33 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.7%. The capital structure is 56.1% equity and 43.9% debt.

Interpretation

A WACC of 5.6% suggests that the market views Dominion Energy, Inc Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare D's WACC of 5.6% against industry peers to gauge its relative financing costs. A beta of 0.33 reflects the stock's volatility relative to the broader market.

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VALUATION

D WACC: 5.58% for Dominion Energy, Inc Common Stock

Current inputs imply a 7.07% cost of equity and a 4.66% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Dominion Energy, Inc Common Stock Common Stock (D) WACC Results
Weighted Average Cost of Capital
5.58%
Cost of Equity
7.07%
Risk-Free Rate4.73%
Beta0.33
Market Risk Premium4.23%
Cost of Debt
3.68%
Pre-Tax Cost of Debt4.66%
Tax Rate21.00%
Tax Shield0.98%
Capital Structure
Equity: 56.10%($57.65B)
Debt: 43.90%($45.11B)
Equity Component
3.97%
56.10% × 7.07%
Debt Component
1.62%
43.90% × 3.68%

Dominion Energy, Inc Common Stock (D) WACC in context

Dominion Energy, Inc Common Stock (D) currently screens with an estimated WACC of 5.58%. That blends a 7.07% cost of equity, a 4.66% pre-tax cost of debt, and a 56.10% 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 D WACC implies

A 5.58% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates D

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.33 and equity accounts for 56.10% 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.