Question 1

What is MDU Resources Group, Inc.'s WACC?

Accepted Answer

MDU Resources Group, Inc. (MDU) has a Weighted Average Cost of Capital (WACC) of 5.87%. This is calculated using a Cost of Equity of 7.47% (via CAPM with a beta of 0.64) and a pre-tax Cost of Debt of 4.03%, with an equity weight of 62.72% in the capital structure.

Question 2

Is MDU Resources Group, Inc.'s WACC high or low?

Accepted Answer

MDU Resources Group, Inc.'s WACC of 5.87% 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 MDU Resources Group, Inc.'s WACC calculated?

Accepted Answer

MDU Resources Group, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.47% is derived from the CAPM model using a beta of 0.64. The pre-tax Cost of Debt (Rd) is 4.03%. The capital structure is 62.72% equity and 37.28% debt.

MDU Resources Group, Inc. (MDU) — WACC 分析

WACC 构成

解读

MDU Resources Group, Inc.（MDU）WACC：5.87%

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MDU Resources Group, Inc.（MDU） WACC 解读

MDU 公司分析

MDU DCF 估值

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