EQT
EQT Corp
Price:  
53.45 
USD
Volume:  
6,397,013.00
United States | Oil, Gas & Consumable Fuels
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EQT WACC - Weighted Average Cost of Capital

The WACC of EQT Corp (EQT) is 7.4%.

The Cost of Equity of EQT Corp (EQT) is 8.10%.
The Cost of Debt of EQT Corp (EQT) is 6.35%.

Range Selected
Cost of equity 7.00% - 9.20% 8.10%
Tax rate 21.20% - 23.70% 22.45%
Cost of debt 5.20% - 7.50% 6.35%
WACC 6.3% - 8.4% 7.4%
WACC

EQT WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.69 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.20%
Tax rate 21.20% 23.70%
Debt/Equity ratio 0.3 0.3
Cost of debt 5.20% 7.50%
After-tax WACC 6.3% 8.4%
Selected WACC 7.4%

EQT's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for EQT:

cost_of_equity (8.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.69) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.