Question 1

What is Evolution Petroleum Corporation's WACC?

Accepted Answer

Evolution Petroleum Corporation (EPM) has a Weighted Average Cost of Capital (WACC) of 8.68%. 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 5.00%, with an equity weight of 100.00% in the capital structure.

Question 2

Is Evolution Petroleum Corporation's WACC high or low?

Accepted Answer

Evolution Petroleum Corporation's WACC of 8.68% 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 Evolution Petroleum Corporation's WACC calculated?

Accepted Answer

Evolution Petroleum Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.68% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 5.00%. The capital structure is 100.00% equity and 0.00% debt.

Evolution Petroleum Corporation (EPM) — WACC 分析

WACC 构成

解读

Evolution Petroleum Corporation（EPM）WACC：8.68%

WACC计算器

Evolution Petroleum Corporation（EPM） WACC 解读

EPM 公司分析

EPM DCF 估值

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