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Conagra BrandsFRA:CAO +3.32%56 WACC % is 6.74% as of Jul. 17, 2026, which is 36% above its 10-year median of 4.96. GuruFocus rates FRA:CAO with a GF Score™ of 56/100 and a GF Value™ of €20.62 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,041 Consumer Packaged Goods companies, Conagra Brands ranks better than 73.05% on this metric.
As of today (2026-07-17), Conagra Brands's weighted average cost of capital is 6.74%%. Conagra Brands's ROIC % is 7.16% (calculated using TTM income statement data).
Conagra Brands generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
For a comprehensive WACC calculation, please access the WACC Calculator.
Conagra Brands (FRA:CAO) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Conagra Brands's weighted average cost of capital is 6.74%%. Conagra Brands's ROIC % is 7.16% (calculated using TTM income statement data).
Conagra Brands generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Conagra Brands WACC % Historical Data
* Premium members only.
The historical data trend for Conagra Brands's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Packaged Foods subindustry, Conagra Brands's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Conagra Brands WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Conagra Brands's WACC % distribution charts can be found below:
* The bar in red indicates where Conagra Brands's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Conagra Brands's market capitalization (E) is €6080.824 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of May. 2026, Conagra Brands's latest one-year quarterly average Book Value of Debt (D) is €6657.5886 Mil.
a) weight of equity = E / (E + D) = 6080.824 / (6080.824 + 6657.5886) = 0.4774
b) weight of debt = D / (E + D) = 6657.5886 / (6080.824 + 6657.5886) = 0.5226
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.525%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Conagra Brands's beta is 0.6839.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.525% + 0.6839 * 6% = 8.6284%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of May. 2026, Conagra Brands's interest expense (positive number) was €334.178 Mil. Its total Book Value of Debt (D) is €6657.5886 Mil.
Cost of Debt = 334.178 / 6657.5886 = 5.0195%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 78.731 / -1569.012 = -5.02%, which is less than 0%. Therefore it's set to 0%.
Conagra Brands's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.4774
*
8.6284%
+
0.5226
*
5.0195%
*
(1 - 0%)
=
6.74%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Conagra Brands (FRA:CAO) has a WACC % of 6.74% as of Jul. 17, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Conagra Brands and its competitors. This is 36% above median its historical median of 4.96. Over the past decade, Conagra Brands' WACC % has ranged from 3.71 to 7.90. According to the industry distribution chart, Conagra Brands ranks #550 out of 2041 companies in the Consumer Packaged Goods industry, placing it in the top 26.9%.
Is Conagra Brands' WACC % too high?
Conagra Brands' current WACC % of 6.74% is 36% above median its 10-year median of 4.96. Over the past 10 years, this metric has ranged from a low of 3.71 to a high of 7.90. The Consumer Packaged Goods industry median WACC % is 7.69. Conagra Brands' value of 6.74% is 12.4% below this industry median. Based on the distribution chart, Conagra Brands ranks #550 out of 2041 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Conagra Brands has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Conagra Brands' WACC % compare to CPB and PPC?
According to the Consumer Packaged Goods industry distribution chart, Conagra Brands ranks #550 out of 2041 companies for WACC %. This puts Conagra Brands in the upper half of its industry. The industry median WACC % is 7.69. Conagra Brands' value of 6.74% is 12.4% below this benchmark. Historically, Conagra Brands' own WACC % has ranged from 3.71 to 7.90 over the past decade. While the company's 10-year median is 4.96 vs. the industry median of 7.69, Conagra Brands has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.69, based on 2,041 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Conagra Brands's current WACC % of 6.74% is 12.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Conagra Brands and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Conagra Brands's current WACC % is 6.74%, which is 36% above median its own 10-year median of 4.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Conagra Brands stock overvalued right now?
Based on GuruFocus' analysis, Conagra Brands (FRA:CAO) is currently considered Possible Value Trap. The stock's GF Value™ is €20.62, compared to a current price of €11.99 — trading 41.9% below its estimated fair value. The current WACC % is 6.74%, which is 36% above median its 10-year median of 4.96 and 12.4% below the Consumer Packaged Goods industry median of 7.69. Conagra Brands' overall GF Score™ is 56/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Conagra Brands (FRA:CAO), the current WACC % is 6.74% as of Jul. 17, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Conagra Brands (FRA:CAO) Overvalued in 2026?
Based on GuruFocus' analysis, Conagra Brands stock appears to be undervalued.
The current stock price of €11.99 is trading 41.9% below its estimated GF Value™ of €20.62.
GuruFocus considers Conagra Brands to be Possible Value Trap.
Key valuation signals for FRA:CAO:
WACC %: 6.74% (36% above median its 10-year median of 4.96)
GF Value™: €20.62 vs. price of €11.99 (41.9% below fair value)
Industry Position: 12.4% below the Consumer Packaged Goods median (#550 of 2041)
No single metric tells the full story. See the FRA:CAO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Conagra Brands is a packaged food company that operates predominantly in the United States (91% of fiscal 2025 revenue). Most of its revenue comes from frozen food, including brands like Marie Callender's, Healthy Choice, Banquet, and Birds Eye. Conagra also sells snacks, shelf-stable staples, and refrigerated food through brands like Duncan Hines, Hunt's, Slim Jim, Vlasic, Orville Redenbacher's, Reddi-wip, and Wish-Bone. The company primarily sells through the US retail channel, with just 9% of fiscal 2025 revenue coming from international markets and 9% from foodservice.
56GF Score
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