Question 1

What is Colgate-Palmolive Company's WACC?

Accepted Answer

Colgate-Palmolive Company (CL) has a Weighted Average Cost of Capital (WACC) of 6.20%. This is calculated using a Cost of Equity of 6.57% (via CAPM with a beta of 0.21) and a pre-tax Cost of Debt of 3.31%, with an equity weight of 90.46% in the capital structure.

Question 2

Is Colgate-Palmolive Company's WACC high or low?

Accepted Answer

Colgate-Palmolive Company's WACC of 6.20% 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 Colgate-Palmolive Company's WACC calculated?

Accepted Answer

Colgate-Palmolive Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.57% is derived from the CAPM model using a beta of 0.21. The pre-tax Cost of Debt (Rd) is 3.31%. The capital structure is 90.46% equity and 9.54% debt.

Colgate-Palmolive Company (CL) — WACC 分析

WACC 构成

解读

Colgate-Palmolive Company（CL）WACC：6.20%

WACC计算器

Colgate-Palmolive Company（CL） WACC 解读

CL 公司分析

CL DCF 估值

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