Skip to content

Fortis Inc. Common Shares (FTS) — WACC Analysis

WACC Breakdown

Fortis Inc. Common Shares (FTS) has a weighted average cost of capital (WACC) of 5.3%. The cost of equity is 6.7%, derived from a beta of 0.22 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.7%. The capital structure is 55.1% equity and 44.9% debt.

Interpretation

A WACC of 5.3% suggests that the market views Fortis Inc. Common Shares as relatively low-risk, with a lower cost of financing.

Investors can compare FTS's WACC of 5.3% against industry peers to gauge its relative financing costs. A beta of 0.22 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

FTS WACC: 5.34% for Fortis Inc. Common Shares

Current inputs imply a 6.70% cost of equity and a 4.65% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Fortis Inc. Common Shares Common Stock (FTS) WACC Results
Weighted Average Cost of Capital
5.34%
Cost of Equity
6.70%
Risk-Free Rate4.67%
Beta0.22
Market Risk Premium4.23%
Cost of Debt
3.67%
Pre-Tax Cost of Debt4.65%
Tax Rate21.00%
Tax Shield0.98%
Capital Structure
Equity: 55.12%($27.93B)
Debt: 44.88%($22.74B)
Equity Component
3.69%
55.12% × 6.70%
Debt Component
1.65%
44.88% × 3.67%

Fortis Inc. Common Shares (FTS) WACC in context

Fortis Inc. Common Shares (FTS) currently screens with an estimated WACC of 5.34%. That blends a 6.70% cost of equity, a 4.65% pre-tax cost of debt, and a 55.12% 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 FTS WACC implies

A 5.34% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates FTS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.22 and equity accounts for 55.12% 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.