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W&T Offshore, Inc. (WTI) — WACC Analysis

WACC Breakdown

W&T Offshore, Inc. (WTI) has a weighted average cost of capital (WACC) of 6.3%. The cost of equity is 8.9%, derived from a beta of 0.81 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.0%. The capital structure is 61.7% equity and 38.3% debt.

Interpretation

A WACC of 6.3% suggests that the market views W&T Offshore, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare WTI's WACC of 6.3% against industry peers to gauge its relative financing costs. A beta of 0.81 reflects the stock's volatility relative to the broader market.

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VALUATION

WTI WACC: 6.27% for W&T Offshore, Inc.

Current inputs imply a 8.91% cost of equity and a 2.00% 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

W&T Offshore, Inc. Common Stock (WTI) WACC Results
Weighted Average Cost of Capital
6.27%
Cost of Equity
8.91%
Risk-Free Rate5.22%
Beta0.81
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 61.69%($566.04M)
Debt: 38.31%($351.58M)
Equity Component
5.50%
61.69% × 8.91%
Debt Component
0.77%
38.31% × 2.00%

W&T Offshore, Inc. (WTI) WACC in context

W&T Offshore, Inc. (WTI) currently screens with an estimated WACC of 6.27%. That blends a 8.91% cost of equity, a 2.00% pre-tax cost of debt, and a 61.69% 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 WTI WACC implies

A 6.27% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates WTI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.81 and equity accounts for 61.69% 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.