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California Resources Corporation (CRC) — WACC Analysis

WACC Breakdown

California Resources Corporation (CRC) has a weighted average cost of capital (WACC) of 9.1%. The cost of equity is 9.2%, derived from a beta of 0.90 and a risk-free rate of 5.2%. The after-tax cost of debt is 8.7%. The capital structure is 78.8% equity and 21.2% debt.

Interpretation

A WACC of 9.1% is moderate, reflecting the market's balanced risk assessment of California Resources Corporation.

Investors can compare CRC's WACC of 9.1% against industry peers to gauge its relative financing costs. A beta of 0.90 reflects the stock's volatility relative to the broader market.

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VALUATION

CRC WACC: 9.06% for California Resources Corporation

Current inputs imply a 9.17% cost of equity and a 8.67% 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

California Resources Corporation Common Stock (CRC) WACC Results
Weighted Average Cost of Capital
9.06%
Cost of Equity
9.17%
Risk-Free Rate5.22%
Beta0.90
Market Risk Premium4.23%
Cost of Debt
8.67%
Pre-Tax Cost of Debt8.67%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 78.77%($4753.64M)
Debt: 21.23%($1281.00M)
Equity Component
7.22%
78.77% × 9.17%
Debt Component
1.84%
21.23% × 8.67%

California Resources Corporation (CRC) WACC in context

California Resources Corporation (CRC) currently screens with an estimated WACC of 9.06%. That blends a 9.17% cost of equity, a 8.67% pre-tax cost of debt, and a 78.77% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What CRC WACC implies

A 9.06% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates CRC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.90 and equity accounts for 78.77% 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.