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Shenandoah Telecom Co (SHEN) — WACC Analysis

WACC Breakdown

Shenandoah Telecom Co (SHEN) has a weighted average cost of capital (WACC) of 6.3%. The cost of equity is 8.7%, derived from a beta of 0.71 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.3%. The capital structure is 45.7% equity and 54.3% debt.

Interpretation

A WACC of 6.3% suggests that the market views Shenandoah Telecom Co as relatively low-risk, with a lower cost of financing.

Investors can compare SHEN's WACC of 6.3% against industry peers to gauge its relative financing costs. A beta of 0.71 reflects the stock's volatility relative to the broader market.

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VALUATION

SHEN WACC: 6.29% for Shenandoah Telecom Co

Current inputs imply a 8.65% cost of equity and a 4.31% 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

Shenandoah Telecom Co Common Stock (SHEN) WACC Results
Weighted Average Cost of Capital
6.29%
Cost of Equity
8.65%
Risk-Free Rate5.24%
Beta0.71
Market Risk Premium4.23%
Cost of Debt
4.31%
Pre-Tax Cost of Debt4.31%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 45.68%($583.54M)
Debt: 54.32%($693.89M)
Equity Component
3.95%
45.68% × 8.65%
Debt Component
2.34%
54.32% × 4.31%

Shenandoah Telecom Co (SHEN) WACC in context

Shenandoah Telecom Co (SHEN) currently screens with an estimated WACC of 6.29%. That blends a 8.65% cost of equity, a 4.31% pre-tax cost of debt, and a 45.68% 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 SHEN WACC implies

A 6.29% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SHEN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.71 and equity accounts for 45.68% 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.