Question 1

What is Chevron Corporation's WACC?

Accepted Answer

Chevron Corporation (CVX) has a Weighted Average Cost of Capital (WACC) of 7.03%. This is calculated using a Cost of Equity of 7.28% (via CAPM with a beta of 0.56) and a pre-tax Cost of Debt of 2.95%, with an equity weight of 94.96% in the capital structure.

Question 2

Is Chevron Corporation's WACC high or low?

Accepted Answer

Chevron Corporation's WACC of 7.03% 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 7.28% is derived from the CAPM model using a beta of 0.56. The pre-tax Cost of Debt (Rd) is 2.95%. The capital structure is 94.96% equity and 5.04% debt.

Chevron Corporation (CVX) — WACC 分析

WACC 构成

解读

Chevron Corporation（CVX）WACC：7.03%

WACC计算器

Chevron Corporation（CVX） WACC 解读

CVX 公司分析

CVX DCF 估值

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