OXM WACC - Weighted Average Cost of Capital
The WACC of Oxford Industries Inc (OXM) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.5% | 8.15% |
| Tax rate | 20.2% - 21.4% | 20.8% |
| Cost of debt | 4.5% - 4.5% | 4.5% |
| WACC | 6.6% - 9.2% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.63 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.5% |
| Tax rate | 20.2% | 21.4% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.5% | 4.5% |
| After-tax WACC | 6.6% | 9.2% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OXM | Oxford Industries Inc | 0.04 | 0.49 | 0.48 |
| BEAN.CN | Peekaboo Beans Inc | 0.96 | -0.17 | -0.09 |
| CRI | Carter's Inc | 0.44 | 0.51 | 0.38 |
| GOOS.TO | Canada Goose Holdings Inc | 0.46 | 1.15 | 0.84 |
| LAKE | Lakeland Industries Inc | 0.1 | 0.93 | 0.86 |
| RL | Ralph Lauren Corp | 0.08 | 1.16 | 1.09 |
| SGC | Superior Group of Companies Inc | 0.54 | 1.06 | 0.74 |
| SQBG | Sequential Brands Group Inc | 43.76 | 1.5 | 0.04 |
| VNCE | Vince Holding Corp | 2.37 | -0.66 | -0.23 |
| VAKKO.IS | Vakko Tekstil ve Hazir Giyim Sanayi Isletmeleri AS | 0.31 | 0.86 | 0.69 |
| Low | High | |
| Unlevered beta | 0.44 | 0.71 |
| Relevered beta | 0.45 | 0.73 |
| Adjusted relevered beta | 0.63 | 0.82 |
OXM'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 OXM:
cost_of_equity (8.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.63) + 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.