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Core & Main, Inc. (CNM) — WACC Analysis

WACC Breakdown

Core & Main, Inc. (CNM) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 9.7%, derived from a beta of 1.09 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.5%. The capital structure is 75.4% equity and 24.6% debt.

Interpretation

A WACC of 7.9% suggests that the market views Core & Main, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare CNM's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 1.09 reflects the stock's volatility relative to the broader market.

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VALUATION

CNM WACC: 7.94% for Core & Main, Inc.

Current inputs imply a 9.70% cost of equity and a 3.23% 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

Core & Main, Inc. Common Stock (CNM) WACC Results
Weighted Average Cost of Capital
7.94%
Cost of Equity
9.70%
Risk-Free Rate5.22%
Beta1.09
Market Risk Premium4.23%
Cost of Debt
2.55%
Pre-Tax Cost of Debt3.23%
Tax Rate21.00%
Tax Shield0.68%
Capital Structure
Equity: 75.39%($7501.32M)
Debt: 24.61%($2449.00M)
Equity Component
7.32%
75.39% × 9.70%
Debt Component
0.63%
24.61% × 2.55%

Core & Main, Inc. (CNM) WACC in context

Core & Main, Inc. (CNM) currently screens with an estimated WACC of 7.94%. That blends a 9.70% cost of equity, a 3.23% pre-tax cost of debt, and a 75.39% 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 CNM WACC implies

A 7.94% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CNM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.09 and equity accounts for 75.39% 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.