Question 1

What is Canadian Pacific Kansas City Limited's WACC?

Accepted Answer

Canadian Pacific Kansas City Limited (CP) has a Weighted Average Cost of Capital (WACC) of 7.26%. This is calculated using a Cost of Equity of 8.46% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 82.59% in the capital structure.

Question 2

Is Canadian Pacific Kansas City Limited's WACC high or low?

Accepted Answer

Canadian Pacific Kansas City Limited's WACC of 7.26% 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 Canadian Pacific Kansas City Limited's WACC calculated?

Accepted Answer

Canadian Pacific Kansas City Limited's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.46% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 82.59% equity and 17.41% debt.

Canadian Pacific Kansas City Limited (CP) — WACC 分析

WACC 构成

解读

Canadian Pacific Kansas City Limited（CP）WACC：7.26%

WACC计算器

Canadian Pacific Kansas City Limited（CP） WACC 解读

CP 公司分析

CP DCF 估值

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