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FirstEnergy Corp. (FE) — WACC Analysis

WACC Breakdown

FirstEnergy Corp. (FE) has a weighted average cost of capital (WACC) of 5.4%. The cost of equity is 7.0%, derived from a beta of 0.31 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.8%. The capital structure is 50.2% equity and 49.8% debt.

Interpretation

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

Investors can compare FE's WACC of 5.4% against industry peers to gauge its relative financing costs. A beta of 0.31 reflects the stock's volatility relative to the broader market.

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VALUATION

FE WACC: 5.40% for FirstEnergy Corp.

Current inputs imply a 7.01% cost of equity and a 4.77% 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

FirstEnergy Corp. Common Stock (FE) WACC Results
Weighted Average Cost of Capital
5.40%
Cost of Equity
7.01%
Risk-Free Rate4.73%
Beta0.31
Market Risk Premium4.23%
Cost of Debt
3.77%
Pre-Tax Cost of Debt4.77%
Tax Rate21.00%
Tax Shield1.00%
Capital Structure
Equity: 50.21%($26.55B)
Debt: 49.79%($26.33B)
Equity Component
3.52%
50.21% × 7.01%
Debt Component
1.87%
49.79% × 3.77%

FirstEnergy Corp. (FE) WACC in context

FirstEnergy Corp. (FE) currently screens with an estimated WACC of 5.40%. That blends a 7.01% cost of equity, a 4.77% pre-tax cost of debt, and a 50.21% 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 FE WACC implies

A 5.40% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates FE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.31 and equity accounts for 50.21% 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.

FE WACC: 5.40% — FirstEnergy Corp. Cost of Capital (September 2026) | DeepViews