VST
Vistra Corp
Price:  
158.16 
USD
Volume:  
7,250,243.00
United States | Independent Power and Renewable Electricity Producers
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Vistra WACC - Weighted Average Cost of Capital

The WACC of Vistra Corp (VST) is 6.4%.

The Cost of Equity of Vistra Corp (VST) is 7.30%.
The Cost of Debt of Vistra Corp (VST) is 4.95%.

Range Selected
Cost of equity 5.80% - 8.80% 7.30%
Tax rate 24.20% - 25.90% 25.05%
Cost of debt 4.60% - 5.30% 4.95%
WACC 5.2% - 7.5% 6.4%
WACC

Vistra WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.43 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 8.80%
Tax rate 24.20% 25.90%
Debt/Equity ratio 0.35 0.35
Cost of debt 4.60% 5.30%
After-tax WACC 5.2% 7.5%
Selected WACC 6.4%

Vistra'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 Vistra:

cost_of_equity (7.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.43) + 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.