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Energy Transfer LP Common Units representing limited partner interests (ET) — WACC Analysis

WACC Breakdown

Energy Transfer LP Common Units representing limited partner interests (ET) has a weighted average cost of capital (WACC) of 6.1%. The cost of equity is 7.9%, derived from a beta of 0.63 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.3%. The capital structure is 51.8% equity and 48.2% debt.

Interpretation

A WACC of 6.1% suggests that the market views Energy Transfer LP Common Units representing limited partner interests as relatively low-risk, with a lower cost of financing.

Investors can compare ET's WACC of 6.1% against industry peers to gauge its relative financing costs. A beta of 0.63 reflects the stock's volatility relative to the broader market.

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VALUATION

ET WACC: 6.15% for Energy Transfer LP Common Units representing limited partner interests

Current inputs imply a 7.92% cost of equity and a 5.38% 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

Energy Transfer LP Common Units representing limited partner interests Common Stock (ET) WACC Results
Weighted Average Cost of Capital
6.15%
Cost of Equity
7.92%
Risk-Free Rate4.73%
Beta0.63
Market Risk Premium4.23%
Cost of Debt
4.25%
Pre-Tax Cost of Debt5.38%
Tax Rate21.00%
Tax Shield1.13%
Capital Structure
Equity: 51.75%($73.38B)
Debt: 48.25%($68.41B)
Equity Component
4.10%
51.75% × 7.92%
Debt Component
2.05%
48.25% × 4.25%

Energy Transfer LP Common Units representing limited partner interests (ET) WACC in context

Energy Transfer LP Common Units representing limited partner interests (ET) currently screens with an estimated WACC of 6.15%. That blends a 7.92% cost of equity, a 5.38% pre-tax cost of debt, and a 51.75% 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 ET WACC implies

A 6.15% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates ET

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.63 and equity accounts for 51.75% 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.