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NiSource Inc. (NI) — WACC Analysis

WACC Breakdown

NiSource Inc. (NI) has a weighted average cost of capital (WACC) of 5.8%. The cost of equity is 7.3%, derived from a beta of 0.42 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.8%. The capital structure is 55.7% equity and 44.3% debt.

Interpretation

A WACC of 5.8% suggests that the market views NiSource Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare NI's WACC of 5.8% 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

NI WACC: 5.78% for NiSource Inc.

Current inputs imply a 7.32% cost of equity and a 4.85% 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

NiSource Inc. Common Stock (NI) WACC Results
Weighted Average Cost of Capital
5.78%
Cost of Equity
7.32%
Risk-Free Rate4.73%
Beta0.42
Market Risk Premium4.23%
Cost of Debt
3.83%
Pre-Tax Cost of Debt4.85%
Tax Rate21.00%
Tax Shield1.02%
Capital Structure
Equity: 55.69%($19.62B)
Debt: 44.31%($15.61B)
Equity Component
4.08%
55.69% × 7.32%
Debt Component
1.70%
44.31% × 3.83%

NiSource Inc. (NI) WACC in context

NiSource Inc. (NI) currently screens with an estimated WACC of 5.78%. That blends a 7.32% cost of equity, a 4.85% pre-tax cost of debt, and a 55.69% 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 NI WACC implies

A 5.78% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates NI

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 55.69% 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.