Question 1

What is Occidental Petroleum Corporation's WACC?

Accepted Answer

Occidental Petroleum Corporation (OXY) has a Weighted Average Cost of Capital (WACC) of 7.54%. This is calculated using a Cost of Equity of 7.98% (via CAPM with a beta of 0.71) and a pre-tax Cost of Debt of 7.61%, with an equity weight of 77.30% in the capital structure.

Question 2

Is Occidental Petroleum Corporation's WACC high or low?

Accepted Answer

Occidental Petroleum Corporation's WACC of 7.54% 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 Occidental Petroleum Corporation's WACC calculated?

Accepted Answer

Occidental Petroleum Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.98% is derived from the CAPM model using a beta of 0.71. The pre-tax Cost of Debt (Rd) is 7.61%. The capital structure is 77.30% equity and 22.70% debt.

Occidental Petroleum Corporation (OXY) — WACC 分析

WACC 构成

解读

Occidental Petroleum Corporation（OXY）WACC：7.54%

WACC计算器

Occidental Petroleum Corporation（OXY） WACC 解读

OXY 公司分析

OXY DCF 估值

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