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Entergy Corporation (ETR) — WACC Analysis

WACC Breakdown

Entergy Corporation (ETR) has a weighted average cost of capital (WACC) of 6.0%. The cost of equity is 7.8%, derived from a beta of 0.42 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.4%. The capital structure is 60.4% equity and 39.6% debt.

Interpretation

A WACC of 6.0% suggests that the market views Entergy Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare ETR's WACC of 6.0% against industry peers to gauge its relative financing costs. A beta of 0.42 reflects the stock's volatility relative to the broader market.

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VALUATION

ETR WACC: 6.04% for Entergy Corporation

Current inputs imply a 7.78% cost of equity and a 4.26% 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

Entergy Corporation Common Stock (ETR) WACC Results
Weighted Average Cost of Capital
6.04%
Cost of Equity
7.78%
Risk-Free Rate5.19%
Beta0.42
Market Risk Premium4.23%
Cost of Debt
3.37%
Pre-Tax Cost of Debt4.26%
Tax Rate21.00%
Tax Shield0.90%
Capital Structure
Equity: 60.42%($49.67B)
Debt: 39.58%($32.53B)
Equity Component
4.70%
60.42% × 7.78%
Debt Component
1.33%
39.58% × 3.37%

Entergy Corporation (ETR) WACC in context

Entergy Corporation (ETR) currently screens with an estimated WACC of 6.04%. That blends a 7.78% cost of equity, a 4.26% pre-tax cost of debt, and a 60.42% 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 ETR WACC implies

A 6.04% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates ETR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.42 and equity accounts for 60.42% 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.