Question 1

What is Black Hills Corporation's WACC?

Accepted Answer

Black Hills Corporation (BKH) has a Weighted Average Cost of Capital (WACC) of 5.39%. This is calculated using a Cost of Equity of 7.05% (via CAPM with a beta of 0.44) and a pre-tax Cost of Debt of 4.26%, with an equity weight of 54.98% in the capital structure.

Question 2

Is Black Hills Corporation's WACC high or low?

Accepted Answer

Black Hills Corporation's WACC of 5.39% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Black Hills Corporation's WACC calculated?

Accepted Answer

Black Hills Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.05% is derived from the CAPM model using a beta of 0.44. The pre-tax Cost of Debt (Rd) is 4.26%. The capital structure is 54.98% equity and 45.02% debt.

Black Hills Corporation (BKH) — WACC 分析

WACC 构成

解读

Black Hills Corporation（BKH）WACC：5.39%

WACC计算器

Black Hills Corporation（BKH） WACC 解读

BKH 公司分析

BKH DCF 估值

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