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Conagra Brands, Inc. (CAG) — WACC Analysis

WACC Breakdown

Conagra Brands, Inc. (CAG) has a weighted average cost of capital (WACC) of 5.9%. The cost of equity is 7.1%, derived from a beta of 0.17 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.9%. The capital structure is 46.6% equity and 53.4% debt.

Interpretation

A WACC of 5.9% suggests that the market views Conagra Brands, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare CAG's WACC of 5.9% against industry peers to gauge its relative financing costs. A beta of 0.17 reflects the stock's volatility relative to the broader market.

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VALUATION

CAG WACC: 5.92% for Conagra Brands, Inc.

Current inputs imply a 7.08% cost of equity and a 4.90% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Conagra Brands, Inc. Common Stock (CAG) WACC Results
Weighted Average Cost of Capital
5.92%
Cost of Equity
7.08%
Risk-Free Rate5.19%
Beta0.17
Market Risk Premium4.23%
Cost of Debt
4.90%
Pre-Tax Cost of Debt4.90%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 46.58%($6769.70M)
Debt: 53.42%($7762.50M)
Equity Component
3.30%
46.58% × 7.08%
Debt Component
2.62%
53.42% × 4.90%

Conagra Brands, Inc. (CAG) WACC in context

Conagra Brands, Inc. (CAG) currently screens with an estimated WACC of 5.92%. That blends a 7.08% cost of equity, a 4.90% pre-tax cost of debt, and a 46.58% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What CAG WACC implies

A 5.92% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CAG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.17 and equity accounts for 46.58% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.