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DT Midstream, Inc. (DTM) — WACC Analysis

WACC Breakdown

DT Midstream, Inc. (DTM) has a weighted average cost of capital (WACC) of 7.4%. The cost of equity is 8.3%, derived from a beta of 0.66 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.9%. The capital structure is 79.8% equity and 20.2% debt.

Interpretation

A WACC of 7.4% suggests that the market views DT Midstream, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare DTM's WACC of 7.4% against industry peers to gauge its relative financing costs. A beta of 0.66 reflects the stock's volatility relative to the broader market.

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VALUATION

DTM WACC: 7.43% for DT Midstream, Inc.

Current inputs imply a 8.32% cost of equity and a 4.97% 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

DT Midstream, Inc. Common Stock (DTM) WACC Results
Weighted Average Cost of Capital
7.43%
Cost of Equity
8.32%
Risk-Free Rate5.05%
Beta0.66
Market Risk Premium4.23%
Cost of Debt
3.93%
Pre-Tax Cost of Debt4.97%
Tax Rate21.00%
Tax Shield1.04%
Capital Structure
Equity: 79.81%($12.95B)
Debt: 20.19%($3277.00M)
Equity Component
6.64%
79.81% × 8.32%
Debt Component
0.79%
20.19% × 3.93%

DT Midstream, Inc. (DTM) WACC in context

DT Midstream, Inc. (DTM) currently screens with an estimated WACC of 7.43%. That blends a 8.32% cost of equity, a 4.97% pre-tax cost of debt, and a 79.81% 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 DTM WACC implies

A 7.43% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates DTM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.66 and equity accounts for 79.81% 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.