Question 1

What is Consolidated Edison, Inc.'s WACC?

Accepted Answer

Consolidated Edison, Inc. (ED) has a Weighted Average Cost of Capital (WACC) of 6.68%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.78%, with an equity weight of 61.13% in the capital structure.

Question 2

Is Consolidated Edison, Inc.'s WACC high or low?

Accepted Answer

Consolidated Edison, Inc.'s WACC of 6.68% 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 Consolidated Edison, Inc.'s WACC calculated?

Accepted Answer

Consolidated Edison, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.78%. The capital structure is 61.13% equity and 38.87% debt.

Consolidated Edison, Inc. (ED) — WACC 分析

WACC 构成

解读

Consolidated Edison, Inc.（ED）WACC：6.68%

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Consolidated Edison, Inc.（ED） WACC 解读

ED 公司分析

ED DCF 估值

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