Question 1

What is Chevron Corporation's WACC?

Accepted Answer

Chevron Corporation (CVX) has a Weighted Average Cost of Capital (WACC) of 7.02%. This is calculated using a Cost of Equity of 7.47% (via CAPM with a beta of 0.53) and a pre-tax Cost of Debt of 3.41%, with an equity weight of 90.59% in the capital structure.

Question 2

Is Chevron Corporation's WACC high or low?

Accepted Answer

Chevron Corporation's WACC of 7.02% 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 Chevron Corporation's WACC calculated?

Accepted Answer

Chevron Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.47% is derived from the CAPM model using a beta of 0.53. The pre-tax Cost of Debt (Rd) is 3.41%. The capital structure is 90.59% equity and 9.41% debt.

Chevron Corporation (CVX) — WACC 分析

WACC 构成

解读

Chevron Corporation（CVX）WACC：7.02%

WACC计算器

Chevron Corporation（CVX） WACC 解读

CVX 公司分析

CVX DCF 估值

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