Question 1

What is Emera Incorporated's WACC?

Accepted Answer

Emera Incorporated (EMA) has a Weighted Average Cost of Capital (WACC) of 6.40%. This is calculated using a Cost of Equity of 8.68% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 5.02%, with an equity weight of 51.64% in the capital structure.

Question 2

Is Emera Incorporated's WACC high or low?

Accepted Answer

Emera Incorporated's WACC of 6.40% 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 Emera Incorporated's WACC calculated?

Accepted Answer

Emera Incorporated's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.68% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 5.02%. The capital structure is 51.64% equity and 48.36% debt.

Emera Incorporated (EMA) — WACC 分析

WACC 构成

解读

Emera Incorporated（EMA）WACC：6.40%

WACC计算器

Emera Incorporated（EMA） WACC 解读

EMA 公司分析

EMA DCF 估值

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