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H2O America Common Stock (HTO) — WACC Analysis

WACC Breakdown

H2O America Common Stock (HTO) has a weighted average cost of capital (WACC) of 6.7%. The cost of equity is 9.4%, derived from a beta of 1.00 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.1%. The capital structure is 56.7% equity and 43.3% debt.

Interpretation

A WACC of 6.7% suggests that the market views H2O America Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare HTO's WACC of 6.7% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

HTO WACC: 6.69% for H2O America Common Stock

Current inputs imply a 9.45% cost of equity and a 3.90% 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

H2O America Common Stock Common Stock (HTO) WACC Results
Weighted Average Cost of Capital
6.69%
Cost of Equity
9.45%
Risk-Free Rate5.22%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.08%
Pre-Tax Cost of Debt3.90%
Tax Rate21.00%
Tax Shield0.82%
Capital Structure
Equity: 56.71%($2454.90M)
Debt: 43.29%($1874.14M)
Equity Component
5.36%
56.71% × 9.45%
Debt Component
1.33%
43.29% × 3.08%

H2O America Common Stock (HTO) WACC in context

H2O America Common Stock (HTO) currently screens with an estimated WACC of 6.69%. That blends a 9.45% cost of equity, a 3.90% pre-tax cost of debt, and a 56.71% 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 HTO WACC implies

A 6.69% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates HTO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 56.71% 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.