CNP
CenterPoint Energy Inc
Price:  
27.44 
USD
Volume:  
3,061,470.00
United States | Multi-Utilities
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CNP WACC - Weighted Average Cost of Capital

The WACC of CenterPoint Energy Inc (CNP) is 5.5%.

The Cost of Equity of CenterPoint Energy Inc (CNP) is 7.35%.
The Cost of Debt of CenterPoint Energy Inc (CNP) is 4.35%.

Range Selected
Cost of equity 6.50% - 8.20% 7.35%
Tax rate 15.00% - 19.50% 17.25%
Cost of debt 4.00% - 4.70% 4.35%
WACC 5.0% - 6.0% 5.5%
WACC

CNP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.57 0.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 8.20%
Tax rate 15.00% 19.50%
Debt/Equity ratio 0.97 0.97
Cost of debt 4.00% 4.70%
After-tax WACC 5.0% 6.0%
Selected WACC 5.5%