Question 1

What is CF Industries Holding, Inc.'s WACC?

Accepted Answer

CF Industries Holding, Inc. (CF) has a Weighted Average Cost of Capital (WACC) of 6.45%. This is calculated using a Cost of Equity of 7.00% (via CAPM with a beta of 0.45) and a pre-tax Cost of Debt of 4.07%, with an equity weight of 85.35% in the capital structure.

Question 2

Is CF Industries Holding, Inc.'s WACC high or low?

Accepted Answer

CF Industries Holding, Inc.'s WACC of 6.45% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is CF Industries Holding, Inc.'s WACC calculated?

Accepted Answer

CF Industries Holding, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.00% is derived from the CAPM model using a beta of 0.45. The pre-tax Cost of Debt (Rd) is 4.07%. The capital structure is 85.35% equity and 14.65% debt.

CF Industries Holding, Inc. (CF) — WACC 分析

WACC 构成

解读

CF Industries Holding, Inc.（CF）WACC：6.45%

WACC计算器

CF Industries Holding, Inc.（CF） WACC 解读

CF 公司分析

CF DCF 估值

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