Question 1

What is WEC Energy Group, Inc.'s WACC?

Accepted Answer

WEC Energy Group, Inc. (WEC) has a Weighted Average Cost of Capital (WACC) of 5.43%. This is calculated using a Cost of Equity of 6.50% (via CAPM with a beta of 0.28) and a pre-tax Cost of Debt of 4.38%, with an equity weight of 64.89% in the capital structure.

Question 2

Is WEC Energy Group, Inc.'s WACC high or low?

Accepted Answer

WEC Energy Group, Inc.'s WACC of 5.43% 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 WEC Energy Group, Inc.'s WACC calculated?

Accepted Answer

WEC Energy Group, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.50% is derived from the CAPM model using a beta of 0.28. The pre-tax Cost of Debt (Rd) is 4.38%. The capital structure is 64.89% equity and 35.11% debt.

WEC Energy Group, Inc. (WEC) — WACC 分析

WACC 构成

解读

WEC Energy Group, Inc.（WEC）WACC：5.43%

WACC计算器

WEC Energy Group, Inc.（WEC） WACC 解读

WEC 公司分析

WEC DCF 估值

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