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ExxonMobil Holdings Corporation (XOM) — WACC Analysis

WACC Breakdown

ExxonMobil Holdings Corporation (XOM) has a weighted average cost of capital (WACC) of 7.0%. The cost of equity is 7.3%, derived from a beta of 0.41 and a risk-free rate of 4.7%. The after-tax cost of debt is 1.7%. The capital structure is 95.3% equity and 4.7% debt.

Interpretation

A WACC of 7.0% suggests that the market views ExxonMobil Holdings Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare XOM's WACC of 7.0% against industry peers to gauge its relative financing costs. A beta of 0.41 reflects the stock's volatility relative to the broader market.

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VALUATION

XOM WACC: 7.04% for ExxonMobil Holdings Corporation

Current inputs imply a 7.31% cost of equity and a 2.09% 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

ExxonMobil Holdings Corporation Common Stock (XOM) WACC Results
Weighted Average Cost of Capital
7.04%
Cost of Equity
7.31%
Risk-Free Rate4.74%
Beta0.41
Market Risk Premium4.23%
Cost of Debt
1.65%
Pre-Tax Cost of Debt2.09%
Tax Rate21.00%
Tax Shield0.44%
Capital Structure
Equity: 95.35%($678.92B)
Debt: 4.65%($33.13B)
Equity Component
6.97%
95.35% × 7.31%
Debt Component
0.08%
4.65% × 1.65%

ExxonMobil Holdings Corporation (XOM) WACC in context

ExxonMobil Holdings Corporation (XOM) currently screens with an estimated WACC of 7.04%. That blends a 7.31% cost of equity, a 2.09% pre-tax cost of debt, and a 95.35% 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 XOM WACC implies

A 7.04% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates XOM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.41 and equity accounts for 95.35% 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.