Question 1

What is Northwest Natural Holding Company's WACC?

Accepted Answer

Northwest Natural Holding Company (NWN) has a Weighted Average Cost of Capital (WACC) of 4.99%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 46.87% in the capital structure.

Question 2

Is Northwest Natural Holding Company's WACC high or low?

Accepted Answer

Northwest Natural Holding Company's WACC of 4.99% 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 Northwest Natural Holding Company's WACC calculated?

Accepted Answer

Northwest Natural Holding Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 46.87% equity and 53.13% debt.

Northwest Natural Holding Company (NWN) — WACC 分析

WACC 构成

解读

Northwest Natural Holding Company（NWN）WACC：4.99%

WACC计算器

Northwest Natural Holding Company（NWN） WACC 解读

NWN 公司分析

NWN DCF 估值

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