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The Campbell's Company Common Stock (CPB) — WACC Analysis

WACC Breakdown

The Campbell's Company Common Stock (CPB) has a weighted average cost of capital (WACC) of 5.5%. The cost of equity is 6.9%, derived from a beta of 0.10 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.2%. The capital structure is 49.0% equity and 51.0% debt.

Interpretation

A WACC of 5.5% suggests that the market views The Campbell's Company Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare CPB's WACC of 5.5% against industry peers to gauge its relative financing costs. A beta of 0.10 reflects the stock's volatility relative to the broader market.

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VALUATION

CPB WACC: 5.54% for The Campbell's Company Common Stock

Current inputs imply a 6.88% cost of equity and a 5.37% 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

The Campbell's Company Common Stock Common Stock (CPB) WACC Results
Weighted Average Cost of Capital
5.54%
Cost of Equity
6.88%
Risk-Free Rate5.19%
Beta0.10
Market Risk Premium4.23%
Cost of Debt
4.24%
Pre-Tax Cost of Debt5.37%
Tax Rate21.00%
Tax Shield1.13%
Capital Structure
Equity: 48.99%($5916.98M)
Debt: 51.01%($6160.00M)
Equity Component
3.37%
48.99% × 6.88%
Debt Component
2.17%
51.01% × 4.24%

The Campbell's Company Common Stock (CPB) WACC in context

The Campbell's Company Common Stock (CPB) currently screens with an estimated WACC of 5.54%. That blends a 6.88% cost of equity, a 5.37% pre-tax cost of debt, and a 48.99% 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 CPB WACC implies

A 5.54% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CPB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.10 and equity accounts for 48.99% 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.