Question 1

What is H2O America Common Stock's WACC?

Accepted Answer

H2O America Common Stock (HTO) has a Weighted Average Cost of Capital (WACC) of 6.24%. 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 3.90%, with an equity weight of 56.35% in the capital structure.

Question 2

Is H2O America Common Stock's WACC high or low?

Accepted Answer

H2O America Common Stock's WACC of 6.24% 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 H2O America Common Stock's WACC calculated?

Accepted Answer

H2O America Common Stock'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 3.90%. The capital structure is 56.35% equity and 43.65% debt.

H2O America Common Stock (HTO) — WACC 分析

WACC 构成

解读

H2O America Common Stock（HTO）WACC：6.24%

WACC计算器

H2O America Common Stock（HTO） WACC 解读

HTO 公司分析

HTO DCF 估值

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