Question 1

What is Black Hills Corporation's WACC?

Accepted Answer

Black Hills Corporation (BKH) has a Weighted Average Cost of Capital (WACC) of 5.57%. This is calculated using a Cost of Equity of 7.00% (via CAPM with a beta of 0.41) and a pre-tax Cost of Debt of 4.73%, with an equity weight of 56.37% in the capital structure.

Question 2

Is Black Hills Corporation's WACC high or low?

Accepted Answer

Black Hills Corporation's WACC of 5.57% 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 7.00% is derived from the CAPM model using a beta of 0.41. The pre-tax Cost of Debt (Rd) is 4.73%. The capital structure is 56.37% equity and 43.63% debt.

Black Hills Corporation (BKH) — WACC 分析

WACC 构成

解读

Black Hills Corporation（BKH）WACC：5.57%

WACC计算器

Black Hills Corporation（BKH） WACC 解读

BKH 公司分析

BKH DCF 估值

继续做同行对比