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Kenvue Inc. (KVUE) — WACC Analysis

WACC Breakdown

Kenvue Inc. (KVUE) has a weighted average cost of capital (WACC) of 6.9%. The cost of equity is 7.4%, derived from a beta of 0.27 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.7%. The capital structure is 82.8% equity and 17.2% debt.

Interpretation

A WACC of 6.9% suggests that the market views Kenvue Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare KVUE's WACC of 6.9% against industry peers to gauge its relative financing costs. A beta of 0.27 reflects the stock's volatility relative to the broader market.

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VALUATION

KVUE WACC: 6.94% for Kenvue Inc.

Current inputs imply a 7.39% cost of equity and a 6.01% 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

Kenvue Inc. Common Stock (KVUE) WACC Results
Weighted Average Cost of Capital
6.94%
Cost of Equity
7.39%
Risk-Free Rate5.22%
Beta0.27
Market Risk Premium4.23%
Cost of Debt
4.75%
Pre-Tax Cost of Debt6.01%
Tax Rate21.00%
Tax Shield1.26%
Capital Structure
Equity: 82.78%($34.00B)
Debt: 17.22%($7074.00M)
Equity Component
6.12%
82.78% × 7.39%
Debt Component
0.82%
17.22% × 4.75%

Kenvue Inc. (KVUE) WACC in context

Kenvue Inc. (KVUE) currently screens with an estimated WACC of 6.94%. That blends a 7.39% cost of equity, a 6.01% pre-tax cost of debt, and a 82.78% 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 KVUE WACC implies

A 6.94% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates KVUE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.27 and equity accounts for 82.78% 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.