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WEC Energy Group, Inc. (WEC) — WACC Analysis

WACC Breakdown

WEC Energy Group, Inc. (WEC) has a weighted average cost of capital (WACC) of 5.8%. The cost of equity is 7.3%, derived from a beta of 0.26 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.4%. The capital structure is 62.2% equity and 37.8% debt.

Interpretation

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

Investors can compare WEC's WACC of 5.8% against industry peers to gauge its relative financing costs. A beta of 0.26 reflects the stock's volatility relative to the broader market.

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VALUATION

WEC WACC: 5.84% for WEC Energy Group, Inc.

Current inputs imply a 7.33% cost of equity and a 4.30% 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

WEC Energy Group, Inc. Common Stock (WEC) WACC Results
Weighted Average Cost of Capital
5.84%
Cost of Equity
7.33%
Risk-Free Rate5.19%
Beta0.26
Market Risk Premium4.23%
Cost of Debt
3.39%
Pre-Tax Cost of Debt4.30%
Tax Rate21.00%
Tax Shield0.90%
Capital Structure
Equity: 62.19%($34.78B)
Debt: 37.81%($21.15B)
Equity Component
4.56%
62.19% × 7.33%
Debt Component
1.28%
37.81% × 3.39%

WEC Energy Group, Inc. (WEC) WACC in context

WEC Energy Group, Inc. (WEC) currently screens with an estimated WACC of 5.84%. That blends a 7.33% cost of equity, a 4.30% pre-tax cost of debt, and a 62.19% 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 WEC WACC implies

A 5.84% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates WEC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.26 and equity accounts for 62.19% 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.