KVUE
Kenvue Inc
Price:  
23.87 
USD
Volume:  
30,032,190.00
United States | Personal Care Products
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KVUE WACC - Weighted Average Cost of Capital

The WACC of Kenvue Inc (KVUE) is 8.3%.

The Cost of Equity of Kenvue Inc (KVUE) is 9.10%.
The Cost of Debt of Kenvue Inc (KVUE) is 4.90%.

Range Selected
Cost of equity 7.80% - 10.40% 9.10%
Tax rate 22.80% - 25.30% 24.05%
Cost of debt 4.90% - 4.90% 4.90%
WACC 7.2% - 9.3% 8.3%
WACC

KVUE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.86 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.40%
Tax rate 22.80% 25.30%
Debt/Equity ratio 0.19 0.19
Cost of debt 4.90% 4.90%
After-tax WACC 7.2% 9.3%
Selected WACC 8.3%

KVUE's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for KVUE:

cost_of_equity (9.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.86) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.