Question 1

What is Ormat Technologies, Inc.'s WACC?

Accepted Answer

Ormat Technologies, Inc. (ORA) has a Weighted Average Cost of Capital (WACC) of 7.45%. 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 5.48%, with an equity weight of 74.25% in the capital structure.

Question 2

Is Ormat Technologies, Inc.'s WACC high or low?

Accepted Answer

Ormat Technologies, Inc.'s WACC of 7.45% 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 Ormat Technologies, Inc.'s WACC calculated?

Accepted Answer

Ormat Technologies, Inc.'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 5.48%. The capital structure is 74.25% equity and 25.75% debt.

Ormat Technologies, Inc. (ORA) — WACC 分析

WACC 构成

解读

Ormat Technologies, Inc.（ORA）WACC：7.45%

WACC计算器

Ormat Technologies, Inc.（ORA） WACC 解读

ORA 公司分析

ORA DCF 估值

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