Question 1

What is Empire Petroleum Corporation's WACC?

Accepted Answer

Empire Petroleum Corporation (EP) has a Weighted Average Cost of Capital (WACC) of 8.48%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 99.86% in the capital structure.

Question 2

Is Empire Petroleum Corporation's WACC high or low?

Accepted Answer

Empire Petroleum Corporation's WACC of 8.48% falls within the typical 8-12% range for mid-cap growth companies. 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 Empire Petroleum Corporation's WACC calculated?

Accepted Answer

Empire Petroleum Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.49% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 99.86% equity and 0.14% debt.

Empire Petroleum Corporation (EP) — WACC 分析

WACC 构成

解读

Empire Petroleum Corporation（EP）WACC：8.48%

WACC计算器

Empire Petroleum Corporation（EP） WACC 解读

EP 公司分析

EP DCF 估值

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