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Occidental Petroleum Corporation (OXY) — WACC Analysis

WACC Breakdown

Occidental Petroleum Corporation (OXY) has a weighted average cost of capital (WACC) of 7.6%. The cost of equity is 8.0%, derived from a beta of 0.67 and a risk-free rate of 4.7%. The after-tax cost of debt is 5.9%. The capital structure is 81.1% equity and 18.9% debt.

Interpretation

A WACC of 7.6% suggests that the market views Occidental Petroleum Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare OXY's WACC of 7.6% against industry peers to gauge its relative financing costs. A beta of 0.67 reflects the stock's volatility relative to the broader market.

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VALUATION

OXY WACC: 7.63% for Occidental Petroleum Corporation

Current inputs imply a 8.03% cost of equity and a 7.46% 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

Occidental Petroleum Corporation Common Stock (OXY) WACC Results
Weighted Average Cost of Capital
7.63%
Cost of Equity
8.03%
Risk-Free Rate4.73%
Beta0.67
Market Risk Premium4.23%
Cost of Debt
5.89%
Pre-Tax Cost of Debt7.46%
Tax Rate21.00%
Tax Shield1.57%
Capital Structure
Equity: 81.13%($59.08B)
Debt: 18.87%($13.74B)
Equity Component
6.51%
81.13% × 8.03%
Debt Component
1.11%
18.87% × 5.89%

Occidental Petroleum Corporation (OXY) WACC in context

Occidental Petroleum Corporation (OXY) currently screens with an estimated WACC of 7.63%. That blends a 8.03% cost of equity, a 7.46% pre-tax cost of debt, and a 81.13% 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 OXY WACC implies

A 7.63% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates OXY

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.67 and equity accounts for 81.13% 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.