Question 1

What is CNA Financial Corporation's WACC?

Accepted Answer

CNA Financial Corporation (CNA) has a Weighted Average Cost of Capital (WACC) of 6.56%. This is calculated using a Cost of Equity of 7.33% (via CAPM with a beta of 0.52) and a pre-tax Cost of Debt of 4.58%, with an equity weight of 79.29% in the capital structure.

Question 2

Is CNA Financial Corporation's WACC high or low?

Accepted Answer

CNA Financial Corporation's WACC of 6.56% 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 CNA Financial Corporation's WACC calculated?

Accepted Answer

CNA Financial Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.33% is derived from the CAPM model using a beta of 0.52. The pre-tax Cost of Debt (Rd) is 4.58%. The capital structure is 79.29% equity and 20.71% debt.

CNA Financial Corporation (CNA) — WACC 分析

WACC 构成

解读

CNA Financial Corporation（CNA）WACC：6.56%

WACC计算器

CNA Financial Corporation（CNA） WACC 解读

CNA 公司分析

CNA DCF 估值

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