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Kimberly-Clark Corp. (KMB) — WACC Analysis

WACC Breakdown

Kimberly-Clark Corp. (KMB) has a weighted average cost of capital (WACC) of 6.5%. The cost of equity is 7.2%, derived from a beta of 0.21 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.9%. The capital structure is 84.2% equity and 15.8% debt.

Interpretation

A WACC of 6.5% suggests that the market views Kimberly-Clark Corp. as relatively low-risk, with a lower cost of financing.

Investors can compare KMB's WACC of 6.5% against industry peers to gauge its relative financing costs. A beta of 0.21 reflects the stock's volatility relative to the broader market.

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VALUATION

KMB WACC: 6.51% for Kimberly-Clark Corp.

Current inputs imply a 7.19% cost of equity and a 3.65% 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

Kimberly-Clark Corp. Common Stock (KMB) WACC Results
Weighted Average Cost of Capital
6.51%
Cost of Equity
7.19%
Risk-Free Rate5.19%
Beta0.21
Market Risk Premium4.23%
Cost of Debt
2.88%
Pre-Tax Cost of Debt3.65%
Tax Rate21.00%
Tax Shield0.77%
Capital Structure
Equity: 84.24%($34.61B)
Debt: 15.76%($6474.00M)
Equity Component
6.06%
84.24% × 7.19%
Debt Component
0.45%
15.76% × 2.88%

Kimberly-Clark Corp. (KMB) WACC in context

Kimberly-Clark Corp. (KMB) currently screens with an estimated WACC of 6.51%. That blends a 7.19% cost of equity, a 3.65% pre-tax cost of debt, and a 84.24% 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 KMB WACC implies

A 6.51% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates KMB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.21 and equity accounts for 84.24% 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.