Question 1

What is FirstEnergy Corp.'s WACC?

Accepted Answer

FirstEnergy Corp. (FE) has a Weighted Average Cost of Capital (WACC) of 5.29%. This is calculated using a Cost of Equity of 6.81% (via CAPM with a beta of 0.33) and a pre-tax Cost of Debt of 4.77%, with an equity weight of 49.92% in the capital structure.

Question 2

Is FirstEnergy Corp.'s WACC high or low?

Accepted Answer

FirstEnergy Corp.'s WACC of 5.29% 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 FirstEnergy Corp.'s WACC calculated?

Accepted Answer

FirstEnergy Corp.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.81% is derived from the CAPM model using a beta of 0.33. The pre-tax Cost of Debt (Rd) is 4.77%. The capital structure is 49.92% equity and 50.08% debt.

FirstEnergy Corp. (FE) — WACC 分析

WACC 构成

解读

FirstEnergy Corp.（FE）WACC：5.29%

WACC计算器

FirstEnergy Corp.（FE） WACC 解读

FE 公司分析

FE DCF 估值

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