Value Sense
NEE
NextEra Energy, Inc. (NEE)
Last Price$71.62.1%
Market Cap$145.9B
WACC
4.7%
Cost of Equity
7.4%
Cost of Debt
0.0%
Debt to Equity
56.4%
Beta
0.6
Stock quality
6/10
Good
NEE
is 35.2% overvalued
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NEE WACC

Recent WACC calculation

as of Mar 03, 2025
Cost of Equity
% share of Total Capital
7.4%
63.9%
Risk-free rate
4.2%
Beta
0.7
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
0.0%
36.1%
Average Cost of Debt
0.0%
Effective Tax Rate
16.4%
WACC
4.7%

WACC dynamics

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NEE Cost of Equity

Recent Cost of Equity calculation

as of Mar 03, 2025
Risk-free rate
4.2%
Beta
0.7
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
7.4%

Cost of Equity dynamics

NEE vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

NextEra Energy, Inc. logo
NextEra Energy, Inc.NEE
4.7%
(39.5%)
(38.8%)
26.7%
Median Peer Set
4.5%
1.0%
10.4%
13.9%
Public Service Enterprise Group Incorporated logo
Public Service Enterprise Group IncorporatedPEG
8.0%
14.7%
148.8%
22.8%
Duke Energy Corporation logo
Duke Energy CorporationDUK
7.5%
1.0%
6.6%
9.8%
Xcel Energy Inc. logo
Xcel Energy Inc.XEL
5.4%
(5.4%)
7.2%
14.4%
The Southern Company logo
The Southern CompanySO
4.8%
5.8%
10.4%
16.5%
PG&E Corporation logo
PG&E CorporationPCG
4.5%
12.7%
19.8%
9.2%
American Electric Power Company, Inc. logo
American Electric Power Company, Inc.AEP
4.5%
(3.3%)
(5.5%)
11.6%
Exelon Corporation logo
Exelon CorporationEXC
4.1%
6.0%
4.7%
10.7%
Entergy Corporation logo
Entergy CorporationETR
4.0%
(11.7%)
106.3%
19.4%
Dominion Energy, Inc. logo
Dominion Energy, Inc.D
4.0%
(16.2%)
96.7%
13.9%

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FAQ

What is NextEra Energy, Inc.'s discount rate as of Mar 03, 2025?

As of Mar 03, 2025, NextEra Energy, Inc.'s discount rate is 4.72%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in NextEra Energy, Inc.'s capital structure and risk profile.

What is NextEra Energy, Inc.'s weighted average cost of capital (WACC)?

NextEra Energy, Inc.'s WACC as of Mar 03, 2025, is 4.72%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is NextEra Energy, Inc.'s cost of equity?

NextEra Energy, Inc.'s cost of equity is 7.4%, as of Mar 03, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.