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Emera Incorporated (EMA) — WACC Analysis

WACC Breakdown

Emera Incorporated (EMA) has a weighted average cost of capital (WACC) of 6.5%. The cost of equity is 8.9%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.0%. The capital structure is 50.6% equity and 49.4% debt.

Interpretation

A WACC of 6.5% suggests that the market views Emera Incorporated as relatively low-risk, with a lower cost of financing.

Investors can compare EMA's WACC of 6.5% 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

EMA WACC: 6.46% for Emera Incorporated

Current inputs imply a 8.90% cost of equity and a 5.02% 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

Emera Incorporated Common Stock (EMA) WACC Results
Weighted Average Cost of Capital
6.46%
Cost of Equity
8.90%
Risk-Free Rate4.67%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.96%
Pre-Tax Cost of Debt5.02%
Tax Rate21.00%
Tax Shield1.05%
Capital Structure
Equity: 50.63%($15.33B)
Debt: 49.37%($14.94B)
Equity Component
4.51%
50.63% × 8.90%
Debt Component
1.96%
49.37% × 3.96%

Emera Incorporated (EMA) WACC in context

Emera Incorporated (EMA) currently screens with an estimated WACC of 6.46%. That blends a 8.90% cost of equity, a 5.02% pre-tax cost of debt, and a 50.63% 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 EMA WACC implies

A 6.46% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates EMA

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 50.63% 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.