Question 1

What is Hawaiian Electric Industries, Inc.'s WACC?

Accepted Answer

Hawaiian Electric Industries, Inc. (HE) has a Weighted Average Cost of Capital (WACC) of 5.48%. This is calculated using a Cost of Equity of 6.39% (via CAPM with a beta of 0.51) and a pre-tax Cost of Debt of 4.64%, with an equity weight of 48.23% in the capital structure.

Question 2

Is Hawaiian Electric Industries, Inc.'s WACC high or low?

Accepted Answer

Hawaiian Electric Industries, Inc.'s WACC of 5.48% 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 Hawaiian Electric Industries, Inc.'s WACC calculated?

Accepted Answer

Hawaiian Electric Industries, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.39% is derived from the CAPM model using a beta of 0.51. The pre-tax Cost of Debt (Rd) is 4.64%. The capital structure is 48.23% equity and 51.77% debt.

Hawaiian Electric Industries, Inc. (HE) — WACC 分析

WACC 构成

解读

Hawaiian Electric Industries, Inc.（HE）WACC：5.48%

WACC计算器

Hawaiian Electric Industries, Inc.（HE） WACC 解读

HE 公司分析

HE DCF 估值

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