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Ormat Technologies, Inc. (ORA) — WACC Analysis

WACC Breakdown

Ormat Technologies, Inc. (ORA) has a weighted average cost of capital (WACC) of 9.4%. The cost of equity is 8.7%, derived from a beta of 0.74 and a risk-free rate of 5.2%. The after-tax cost of debt is 13.9%. The capital structure is 86.2% equity and 13.8% debt.

Interpretation

A WACC of 9.4% is moderate, reflecting the market's balanced risk assessment of Ormat Technologies, Inc..

Investors can compare ORA's WACC of 9.4% against industry peers to gauge its relative financing costs. A beta of 0.74 reflects the stock's volatility relative to the broader market.

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VALUATION

ORA WACC: 9.44% for Ormat Technologies, Inc.

Current inputs imply a 8.72% cost of equity and a 17.61% 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

Ormat Technologies, Inc. Common Stock (ORA) WACC Results
Weighted Average Cost of Capital
9.44%
Cost of Equity
8.72%
Risk-Free Rate5.22%
Beta0.74
Market Risk Premium4.23%
Cost of Debt
13.91%
Pre-Tax Cost of Debt17.61%
Tax Rate21.00%
Tax Shield3.70%
Capital Structure
Equity: 86.15%($5638.65M)
Debt: 13.85%($906.44M)
Equity Component
7.51%
86.15% × 8.72%
Debt Component
1.93%
13.85% × 13.91%

Ormat Technologies, Inc. (ORA) WACC in context

Ormat Technologies, Inc. (ORA) currently screens with an estimated WACC of 9.44%. That blends a 8.72% cost of equity, a 17.61% pre-tax cost of debt, and a 86.15% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What ORA WACC implies

A 9.44% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ORA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.74 and equity accounts for 86.15% 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.