Question 1

What is Cleveland-Cliffs Inc.'s WACC?

Accepted Answer

Cleveland-Cliffs Inc. (CLF) has a Weighted Average Cost of Capital (WACC) of 5.65%. This is calculated using a Cost of Equity of 11.04% (via CAPM with a beta of 1.61) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 40.37% in the capital structure.

Question 2

Is Cleveland-Cliffs Inc.'s WACC high or low?

Accepted Answer

Cleveland-Cliffs Inc.'s WACC of 5.65% 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 Cleveland-Cliffs Inc.'s WACC calculated?

Accepted Answer

Cleveland-Cliffs Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 11.04% is derived from the CAPM model using a beta of 1.61. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 40.37% equity and 59.63% debt.

Cleveland-Cliffs Inc. (CLF) — WACC 分析

WACC 构成

解读

Cleveland-Cliffs Inc.（CLF）WACC：5.65%

WACC计算器

Cleveland-Cliffs Inc.（CLF） WACC 解读

CLF 公司分析

CLF DCF 估值

继续做同行对比