Question 1

What is Xcel Energy, Inc.'s WACC?

Accepted Answer

Xcel Energy, Inc. (XEL) has a Weighted Average Cost of Capital (WACC) of 5.60%. This is calculated using a Cost of Equity of 6.66% (via CAPM with a beta of 0.33) and a pre-tax Cost of Debt of 4.59%, with an equity weight of 64.94% in the capital structure.

Question 2

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

Accepted Answer

Xcel Energy, Inc.'s WACC of 5.60% 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 Xcel Energy, Inc.'s WACC calculated?

Accepted Answer

Xcel Energy, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.66% is derived from the CAPM model using a beta of 0.33. The pre-tax Cost of Debt (Rd) is 4.59%. The capital structure is 64.94% equity and 35.06% debt.

Xcel Energy, Inc. (XEL) — WACC 分析

WACC 构成

解读

Xcel Energy, Inc.（XEL）WACC：5.60%

WACC计算器

Xcel Energy, Inc.（XEL） WACC 解读

XEL 公司分析

XEL DCF 估值

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