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OGE Energy Corp. (OGE) — WACC Analysis

WACC Breakdown

OGE Energy Corp. (OGE) has a weighted average cost of capital (WACC) of 6.0%. The cost of equity is 7.4%, derived from a beta of 0.38 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.5%. The capital structure is 62.0% equity and 38.0% debt.

Interpretation

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

Investors can compare OGE's WACC of 6.0% against industry peers to gauge its relative financing costs. A beta of 0.38 reflects the stock's volatility relative to the broader market.

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VALUATION

OGE WACC: 5.96% for OGE Energy Corp.

Current inputs imply a 7.44% cost of equity and a 4.48% 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

OGE Energy Corp. Common Stock (OGE) WACC Results
Weighted Average Cost of Capital
5.96%
Cost of Equity
7.44%
Risk-Free Rate4.96%
Beta0.38
Market Risk Premium4.23%
Cost of Debt
3.54%
Pre-Tax Cost of Debt4.48%
Tax Rate21.00%
Tax Shield0.94%
Capital Structure
Equity: 61.97%($9550.25M)
Debt: 38.03%($5862.00M)
Equity Component
4.61%
61.97% × 7.44%
Debt Component
1.35%
38.03% × 3.54%

OGE Energy Corp. (OGE) WACC in context

OGE Energy Corp. (OGE) currently screens with an estimated WACC of 5.96%. That blends a 7.44% cost of equity, a 4.48% pre-tax cost of debt, and a 61.97% 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 OGE WACC implies

A 5.96% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates OGE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.38 and equity accounts for 61.97% 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.