As of today (2026-06-26), Cenovus Energy's weighted average cost of capital is -2.76%%. Cenovus Energy's ROIC % is 9.69% (calculated using TTM income statement data).
Cenovus Energy 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.
Cenovus Energy (MEX:CVE N) 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, Cenovus Energy's weighted average cost of capital is -2.76%%. Cenovus Energy's ROIC % is 9.69% (calculated using TTM income statement data).
Cenovus Energy 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
Cenovus Energy WACC % Historical Data
* Premium members only.
The historical data trend for Cenovus Energy'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 Oil & Gas Integrated subindustry, Cenovus Energy'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.
Cenovus Energy WACC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Cenovus Energy's WACC % distribution charts can be found below:
* The bar in red indicates where Cenovus Energy'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, Cenovus Energy's market capitalization (E) is MXN807309.281 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 Mar. 2026, Cenovus Energy's latest one-year quarterly average Book Value of Debt (D) is MXN159423.9726 Mil.
a) weight of equity = E / (E + D) = 807309.281 / (807309.281 + 159423.9726) = 0.8351
b) weight of debt = D / (E + D) = 159423.9726 / (807309.281 + 159423.9726) = 0.1649
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 3.5415%. 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. Cenovus Energy's beta is -1.3068.
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 = 3.5415% + -1.3068 * 6% = -4.2993%
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 Mar. 2026, Cenovus Energy's interest expense (positive number) was MXN9378.193 Mil. Its total Book Value of Debt (D) is MXN159423.9726 Mil.
Cost of Debt = 9378.193 / 159423.9726 = 5.8825%.
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 = 10479.848 / 72081.948 = 14.54%.
Cenovus Energy'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)
=
0.8351
*
-4.2993%
+
0.1649
*
5.8825%
*
(1 - 14.54%)
=
-2.76%
* 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.
Cenovus Energy (MEX:CVE N) has a WACC % of -2.76% as of Jun. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Cenovus Energy and its competitors. Over the past decade, Cenovus Energy's WACC % has ranged from 4.56 to 18.95. According to the industry distribution chart, Cenovus Energy ranks #243 out of 1036 companies in the Oil & Gas industry, placing it in the top 23.5%.
Is Cenovus Energy's WACC % too high?
Cenovus Energy's current WACC % is -2.76%. Over the past 10 years, this metric has ranged from a low of 4.56 to a high of 18.95. Based on the distribution chart, Cenovus Energy ranks #243 out of 1036 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Cenovus Energy has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Cenovus Energy's WACC % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Cenovus Energy ranks #243 out of 1036 companies for WACC %. This places Cenovus Energy in the top 24% of its industry — outperforming the majority of peers. The industry median WACC % is 7.40. Historically, Cenovus Energy's own WACC % has ranged from 4.56 to 18.95 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Oil & Gas company?
The median WACC % among Oil & Gas companies is 7.40, based on 1,036 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. 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 Cenovus Energy and its competitors. For the Oil & Gas industry, the median WACC % is 7.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cenovus Energy's current WACC % is -2.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cenovus Energy stock overvalued right now?
Cenovus Energy (MEX:CVE N) has a current WACC % of -2.76%. The stock's GF Value™ is MXN266.02, compared to a current price of MXN415.00 — trading 56% above its estimated fair value. The current WACC % is -2.76%. Cenovus Energy's overall GF Score™ is 66/100 with 3 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 Cenovus Energy (MEX:CVE N), the current WACC % is -2.76% as of Jun. 26, 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 Cenovus Energy (MEX:CVE N) Overvalued in 2026?
Based on GuruFocus' analysis, Cenovus Energy stock appears to be overvalued.
The current stock price of MXN415.00 is trading 56% above its estimated GF Value™ of MXN266.02.
Key valuation signals for MEX:CVE N:
WACC %: -2.76%
GF Value™: MXN266.02 vs. price of MXN415.00 (56% above fair value)
No single metric tells the full story. See the MEX:CVE N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cenovus Energy Inc is a Canadian integrated energy group. The group's upstream operations include oil sands projects in northern Alberta; thermal and conventional crude oil, natural gas, and natural gas liquids (NGLs) projects across Western Canada; crude oil production offshore Newfoundland and Labrador; and natural gas and NGLs production offshore China and Indonesia. Its downstream operations include upgrading and refining operations in Canada and the U.S., and commercial fuel operations across Canada. The group's reportable segments are: Oil Sands, Conventional, Offshore, Canadian Refining, U.S Refining, and Corporate and Eliminations. Maximum revenue is generated from its Oil Sands segment. Geographically, the group derives maximum revenue from the U.S., followed by Canada and China.
66GF Score
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