Question 1

What is Commercial Metals Company's WACC?

Accepted Answer

Commercial Metals Company (CMC) has a Weighted Average Cost of Capital (WACC) of 8.00%. This is calculated using a Cost of Equity of 9.00% (via CAPM with a beta of 1.18) and a pre-tax Cost of Debt of 3.34%, with an equity weight of 84.28% in the capital structure.

Question 2

Is Commercial Metals Company's WACC high or low?

Accepted Answer

Commercial Metals Company's WACC of 8.00% 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 Commercial Metals Company's WACC calculated?

Accepted Answer

Commercial Metals Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.00% is derived from the CAPM model using a beta of 1.18. The pre-tax Cost of Debt (Rd) is 3.34%. The capital structure is 84.28% equity and 15.72% debt.

Commercial Metals Company (CMC) — WACC 分析

WACC 构成

解读

Commercial Metals Company（CMC）WACC：8.00%

WACC计算器

Commercial Metals Company（CMC） WACC 解读

CMC 公司分析

CMC DCF 估值

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