CWH
Camping World Holdings Inc
Price:  
14.47 
USD
Volume:  
3,628,912.00
United States | Specialty Retail
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CWH WACC - Weighted Average Cost of Capital

The WACC of Camping World Holdings Inc (CWH) is 5.8%.

The Cost of Equity of Camping World Holdings Inc (CWH) is 8.80%.
The Cost of Debt of Camping World Holdings Inc (CWH) is 5.00%.

Range Selected
Cost of equity 7.10% - 10.50% 8.80%
Tax rate 12.60% - 13.30% 12.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 6.4% 5.8%
WACC

CWH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.69 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 10.50%
Tax rate 12.60% 13.30%
Debt/Equity ratio 1.99 1.99
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 6.4%
Selected WACC 5.8%

CWH'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 CWH:

cost_of_equity (8.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.69) + 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.