Question 1

What is Corteva, Inc. Common Stock's WACC?

Accepted Answer

Corteva, Inc. Common Stock (CTVA) has a Weighted Average Cost of Capital (WACC) of 7.57%. This is calculated using a Cost of Equity of 7.54% (via CAPM with a beta of 0.65) and a pre-tax Cost of Debt of 10.68%, with an equity weight of 96.97% in the capital structure.

Question 2

Is Corteva, Inc. Common Stock's WACC high or low?

Accepted Answer

Corteva, Inc. Common Stock's WACC of 7.57% 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 Corteva, Inc. Common Stock's WACC calculated?

Accepted Answer

Corteva, Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.54% is derived from the CAPM model using a beta of 0.65. The pre-tax Cost of Debt (Rd) is 10.68%. The capital structure is 96.97% equity and 3.03% debt.

Corteva, Inc. Common Stock (CTVA) — WACC 分析

WACC 构成

解读

Corteva, Inc. Common Stock（CTVA）WACC：7.57%

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Corteva, Inc. Common Stock（CTVA） WACC 解读

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