HZO
MarineMax Inc
Price:  
21.51 
USD
Volume:  
187,142.00
United States | Specialty Retail
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HZO WACC - Weighted Average Cost of Capital

The WACC of MarineMax Inc (HZO) is 9.1%.

The Cost of Equity of MarineMax Inc (HZO) is 12.85%.
The Cost of Debt of MarineMax Inc (HZO) is 10.00%.

Range Selected
Cost of equity 11.00% - 14.70% 12.85%
Tax rate 24.60% - 25.10% 24.85%
Cost of debt 9.10% - 10.90% 10.00%
WACC 8.1% - 10.1% 9.1%
WACC

HZO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.54 1.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 14.70%
Tax rate 24.60% 25.10%
Debt/Equity ratio 2.41 2.41
Cost of debt 9.10% 10.90%
After-tax WACC 8.1% 10.1%
Selected WACC 9.1%

HZO'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 HZO:

cost_of_equity (12.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.54) + 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.