Question 1

What is CVR ENERGY, INC.'s WACC?

Accepted Answer

CVR ENERGY, INC. (CVI) has a Weighted Average Cost of Capital (WACC) of 7.21%. This is calculated using a Cost of Equity of 7.83% (via CAPM with a beta of 0.85) and a pre-tax Cost of Debt of 7.88%, with an equity weight of 61.65% in the capital structure.

Question 2

Is CVR ENERGY, INC.'s WACC high or low?

Accepted Answer

CVR ENERGY, INC.'s WACC of 7.21% 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 CVR ENERGY, INC.'s WACC calculated?

Accepted Answer

CVR ENERGY, INC.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.83% is derived from the CAPM model using a beta of 0.85. The pre-tax Cost of Debt (Rd) is 7.88%. The capital structure is 61.65% equity and 38.35% debt.

CVR ENERGY, INC. (CVI) — WACC 分析

WACC 构成

解读

CVR ENERGY, INC.（CVI）WACC：7.21%

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CVR ENERGY, INC.（CVI） WACC 解读

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CVI DCF 估值

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