Question 1

What is New Jersey Resources Corp's WACC?

Accepted Answer

New Jersey Resources Corp (NJR) has a Weighted Average Cost of Capital (WACC) of 6.53%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.96%, with an equity weight of 63.01% in the capital structure.

Question 2

Is New Jersey Resources Corp's WACC high or low?

Accepted Answer

New Jersey Resources Corp's WACC of 6.53% 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 New Jersey Resources Corp's WACC calculated?

Accepted Answer

New Jersey Resources Corp's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.96%. The capital structure is 63.01% equity and 36.99% debt.

New Jersey Resources Corp (NJR) — WACC 分析

WACC 构成

解读

New Jersey Resources Corp（NJR）WACC：6.53%

WACC计算器

New Jersey Resources Corp（NJR） WACC 解读

NJR 公司分析

NJR DCF 估值

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