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DTE Energy Company (DTE) — WACC Analysis

WACC Breakdown

DTE Energy Company (DTE) has a weighted average cost of capital (WACC) of 6.4%. The cost of equity is 9.0%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.4%. The capital structure is 52.9% equity and 47.1% debt.

Interpretation

A WACC of 6.4% suggests that the market views DTE Energy Company as relatively low-risk, with a lower cost of financing.

Investors can compare DTE's WACC of 6.4% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

DTE WACC: 6.36% for DTE Energy Company

Current inputs imply a 8.96% cost of equity and a 4.36% 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

DTE Energy Company Common Stock (DTE) WACC Results
Weighted Average Cost of Capital
6.36%
Cost of Equity
8.96%
Risk-Free Rate4.73%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.44%
Pre-Tax Cost of Debt4.36%
Tax Rate21.00%
Tax Shield0.92%
Capital Structure
Equity: 52.87%($28.27B)
Debt: 47.13%($25.20B)
Equity Component
4.74%
52.87% × 8.96%
Debt Component
1.62%
47.13% × 3.44%

DTE Energy Company (DTE) WACC in context

DTE Energy Company (DTE) currently screens with an estimated WACC of 6.36%. That blends a 8.96% cost of equity, a 4.36% pre-tax cost of debt, and a 52.87% 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 DTE WACC implies

A 6.36% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates DTE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 52.87% 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.