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CSX Corporation (CSX) — WACC Analysis

WACC Breakdown

CSX Corporation (CSX) has a weighted average cost of capital (WACC) of 7.1%. The cost of equity is 7.9%, derived from a beta of 0.76 and a risk-free rate of 4.3%. The after-tax cost of debt is 3.5%. The capital structure is 83.4% equity and 16.6% debt.

Interpretation

A WACC of 7.1% suggests that the market views CSX Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare CSX's WACC of 7.1% against industry peers to gauge its relative financing costs. A beta of 0.76 reflects the stock's volatility relative to the broader market.

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VALUATION

CSX WACC: 7.14% for CSX Corporation

Current inputs imply a 7.85% cost of equity and a 4.49% 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

CSX Corporation Common Stock (CSX) WACC Results
Weighted Average Cost of Capital
7.14%
Cost of Equity
7.85%
Risk-Free Rate4.30%
Beta0.76
Market Risk Premium4.23%
Cost of Debt
3.55%
Pre-Tax Cost of Debt4.49%
Tax Rate21.00%
Tax Shield0.94%
Capital Structure
Equity: 83.43%($94.99B)
Debt: 16.57%($18.86B)
Equity Component
6.55%
83.43% × 7.85%
Debt Component
0.59%
16.57% × 3.55%

CSX Corporation (CSX) WACC in context

CSX Corporation (CSX) currently screens with an estimated WACC of 7.14%. That blends a 7.85% cost of equity, a 4.49% pre-tax cost of debt, and a 83.43% 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 CSX WACC implies

A 7.14% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CSX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.76 and equity accounts for 83.43% 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.