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Zeo Energy Corporation Class A Common Stock (ZEO) — WACC Analysis

WACC Breakdown

Zeo Energy Corporation Class A Common Stock (ZEO) has a weighted average cost of capital (WACC) of 11.2%. The cost of equity is 9.6%, derived from a beta of 1.05 and a risk-free rate of 5.2%. The after-tax cost of debt is 463.6%. The capital structure is 99.7% equity and 0.3% debt.

Interpretation

A WACC of 11.2% is moderate, reflecting the market's balanced risk assessment of Zeo Energy Corporation Class A Common Stock.

Investors can compare ZEO's WACC of 11.2% against industry peers to gauge its relative financing costs. A beta of 1.05 reflects the stock's volatility relative to the broader market.

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VALUATION

ZEO WACC: 11.17% for Zeo Energy Corporation Class A Common Stock

Current inputs imply a 9.59% cost of equity and a 463.59% 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

Zeo Energy Corporation Class A Common Stock Common Stock (ZEO) WACC Results
Weighted Average Cost of Capital
11.17%
Cost of Equity
9.59%
Risk-Free Rate5.22%
Beta1.05
Market Risk Premium4.23%
Cost of Debt
463.59%
Pre-Tax Cost of Debt463.59%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.65%($12.28M)
Debt: 0.35%($0.04M)
Equity Component
9.56%
99.65% × 9.59%
Debt Component
1.61%
0.35% × 463.59%

Zeo Energy Corporation Class A Common Stock (ZEO) WACC in context

Zeo Energy Corporation Class A Common Stock (ZEO) currently screens with an estimated WACC of 11.17%. That blends a 9.59% cost of equity, a 463.59% pre-tax cost of debt, and a 99.65% 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 ZEO WACC implies

A 11.17% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ZEO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.05 and equity accounts for 99.65% 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.