EFH Holdings Inc (EFH.V) WACC Analysis

As of June 20, 2025, EFH Holdings Inc (EFH.V) carries a Weighted Average Cost of Capital (WACC) of 7.1%. WACC reflects the blended rate EFH Holdings Inc must pay to both equity and debt holders.

Within that, the cost of equity is 5.8%, the cost of debt is 5.0%, and the effective tax rate is 18.3%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.7% – 5.7%
• Adjusted beta: 0.55 – 0.74
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.01

What It Means for Investors

With a selected WACC of 7.1%, EFH Holdings Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.