OXM
Oxford Industries Inc
Price:  
55.01 
USD
Volume:  
348,619
United States | Textiles, Apparel & Luxury Goods

OXM WACC - Weighted Average Cost of Capital

The WACC of Oxford Industries Inc (OXM) is 7.9%.

The Cost of Equity of Oxford Industries Inc (OXM) is 8.15%.
The Cost of Debt of Oxford Industries Inc (OXM) is 4.5%.

RangeSelected
Cost of equity6.8% - 9.5%8.15%
Tax rate20.2% - 21.4%20.8%
Cost of debt4.5% - 4.5%4.5%
WACC6.6% - 9.2%7.9%
WACC

OXM WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.630.82
Additional risk adjustments0.0%0.5%
Cost of equity6.8%9.5%
Tax rate20.2%21.4%
Debt/Equity ratio
0.040.04
Cost of debt4.5%4.5%
After-tax WACC6.6%9.2%
Selected WACC7.9%

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.