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Crown Holdings Inc. (CCK) — WACC Analysis

WACC Breakdown

Crown Holdings Inc. (CCK) has a weighted average cost of capital (WACC) of 7.6%. The cost of equity is 8.4%, derived from a beta of 0.73 and a risk-free rate of 5.0%. The after-tax cost of debt is 5.7%. The capital structure is 69.7% equity and 30.3% debt.

Interpretation

A WACC of 7.6% suggests that the market views Crown Holdings Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare CCK's WACC of 7.6% against industry peers to gauge its relative financing costs. A beta of 0.73 reflects the stock's volatility relative to the broader market.

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VALUATION

CCK WACC: 7.61% for Crown Holdings Inc.

Current inputs imply a 8.45% cost of equity and a 7.18% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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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

Crown Holdings Inc. Common Stock (CCK) WACC Results
Weighted Average Cost of Capital
7.61%
Cost of Equity
8.45%
Risk-Free Rate4.98%
Beta0.73
Market Risk Premium4.23%
Cost of Debt
5.67%
Pre-Tax Cost of Debt7.18%
Tax Rate21.00%
Tax Shield1.51%
Capital Structure
Equity: 69.73%($12.77B)
Debt: 30.27%($5543.00M)
Equity Component
5.89%
69.73% × 8.45%
Debt Component
1.72%
30.27% × 5.67%

Crown Holdings Inc. (CCK) WACC in context

Crown Holdings Inc. (CCK) currently screens with an estimated WACC of 7.61%. That blends a 8.45% cost of equity, a 7.18% pre-tax cost of debt, and a 69.73% 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 CCK WACC implies

A 7.61% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CCK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.73 and equity accounts for 69.73% 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.