Question 1

What is Centene Corporation's WACC?

Accepted Answer

Centene Corporation (CNC) has a Weighted Average Cost of Capital (WACC) of 6.31%. This is calculated using a Cost of Equity of 8.55% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.90%, with an equity weight of 51.89% in the capital structure.

Question 2

Is Centene Corporation's WACC high or low?

Accepted Answer

Centene Corporation's WACC of 6.31% 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 Centene Corporation's WACC calculated?

Accepted Answer

Centene Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.55% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.90%. The capital structure is 51.89% equity and 48.11% debt.

Centene Corporation (CNC) — WACC 分析

WACC 构成

解读

Centene Corporation（CNC）WACC：6.31%

WACC计算器

Centene Corporation（CNC） WACC 解读

CNC 公司分析

CNC DCF 估值

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