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Sempra (SRE) — WACC Analysis

WACC Breakdown

Sempra (SRE) has a weighted average cost of capital (WACC) of 6.5%. The cost of equity is 8.1%, derived from a beta of 0.52 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.8%. The capital structure is 63.5% equity and 36.5% debt.

Interpretation

A WACC of 6.5% suggests that the market views Sempra as relatively low-risk, with a lower cost of financing.

Investors can compare SRE's WACC of 6.5% against industry peers to gauge its relative financing costs. A beta of 0.52 reflects the stock's volatility relative to the broader market.

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VALUATION

SRE WACC: 6.50% for Sempra

Current inputs imply a 8.07% cost of equity and a 4.80% 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

Sempra Common Stock (SRE) WACC Results
Weighted Average Cost of Capital
6.50%
Cost of Equity
8.07%
Risk-Free Rate5.19%
Beta0.52
Market Risk Premium4.23%
Cost of Debt
3.79%
Pre-Tax Cost of Debt4.80%
Tax Rate21.00%
Tax Shield1.01%
Capital Structure
Equity: 63.46%($53.57B)
Debt: 36.54%($30.85B)
Equity Component
5.12%
63.46% × 8.07%
Debt Component
1.39%
36.54% × 3.79%

Sempra (SRE) WACC in context

Sempra (SRE) currently screens with an estimated WACC of 6.50%. That blends a 8.07% cost of equity, a 4.80% pre-tax cost of debt, and a 63.46% 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 SRE WACC implies

A 6.50% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SRE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.52 and equity accounts for 63.46% 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.

SRE WACC: 6.50% — Sempra Cost of Capital (October 2026) | DeepViews