Question 1

What is The Kraft Heinz Company Common Stock's WACC?

Accepted Answer

The Kraft Heinz Company Common Stock (KHC) has a Weighted Average Cost of Capital (WACC) of 5.56%. This is calculated using a Cost of Equity of 6.44% (via CAPM with a beta of 0.25) and a pre-tax Cost of Debt of 4.46%, with an equity weight of 55.63% in the capital structure.

Question 2

Is The Kraft Heinz Company Common Stock's WACC high or low?

Accepted Answer

The Kraft Heinz Company Common Stock's WACC of 5.56% 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 The Kraft Heinz Company Common Stock's WACC calculated?

Accepted Answer

The Kraft Heinz Company Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.44% is derived from the CAPM model using a beta of 0.25. The pre-tax Cost of Debt (Rd) is 4.46%. The capital structure is 55.63% equity and 44.37% debt.

The Kraft Heinz Company Common Stock (KHC) — WACC 分析

WACC 构成

解读

The Kraft Heinz Company Common Stock（KHC）WACC：5.56%

WACC计算器

The Kraft Heinz Company Common Stock（KHC） WACC 解读

KHC 公司分析

KHC DCF 估值

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