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Eversource Energy (ES) — WACC Analysis

WACC Breakdown

Eversource Energy (ES) has a weighted average cost of capital (WACC) of 5.4%. The cost of equity is 7.3%, derived from a beta of 0.40 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.7%. The capital structure is 47.8% equity and 52.2% debt.

Interpretation

A WACC of 5.4% suggests that the market views Eversource Energy as relatively low-risk, with a lower cost of financing.

Investors can compare ES's WACC of 5.4% against industry peers to gauge its relative financing costs. A beta of 0.40 reflects the stock's volatility relative to the broader market.

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VALUATION

ES WACC: 5.42% for Eversource Energy

Current inputs imply a 7.27% cost of equity and a 4.71% 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

Eversource Energy Common Stock (ES) WACC Results
Weighted Average Cost of Capital
5.42%
Cost of Equity
7.27%
Risk-Free Rate4.73%
Beta0.40
Market Risk Premium4.23%
Cost of Debt
3.72%
Pre-Tax Cost of Debt4.71%
Tax Rate21.00%
Tax Shield0.99%
Capital Structure
Equity: 47.82%($26.68B)
Debt: 52.18%($29.11B)
Equity Component
3.48%
47.82% × 7.27%
Debt Component
1.94%
52.18% × 3.72%

Eversource Energy (ES) WACC in context

Eversource Energy (ES) currently screens with an estimated WACC of 5.42%. That blends a 7.27% cost of equity, a 4.71% pre-tax cost of debt, and a 47.82% 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 ES WACC implies

A 5.42% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates ES

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.40 and equity accounts for 47.82% 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.