WWW WACC - Weighted Average Cost of Capital
The WACC of Wolverine World Wide Inc (WWW) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.2% | 8.95% |
| Tax rate | 21.5% - 24.9% | 23.2% |
| Cost of debt | 4.9% - 7.5% | 6.2% |
| WACC | 6.4% - 8.7% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.82 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.2% |
| Tax rate | 21.5% | 24.9% |
| Debt/Equity ratio | 0.47 | 0.47 |
| Cost of debt | 4.9% | 7.5% |
| After-tax WACC | 6.4% | 8.7% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WWW | Wolverine World Wide Inc | 0.47 | 1.63 | 1.2 |
| CROX | Crocs Inc | 0.2 | 0.59 | 0.51 |
| FOSL | Fossil Group Inc | 1.93 | 0.77 | 0.31 |
| GIII | G-III Apparel Group Ltd | 0 | 0.12 | 0.12 |
| GOOS.TO | Canada Goose Holdings Inc | 0.59 | 1.18 | 0.81 |
| NKE | Nike Inc | 0.1 | 0.61 | 0.57 |
| PXFG | Phoenix Footwear Group Inc | 81.8 | -2.08 | -0.03 |
| SKX | Skechers USA Inc | 0.05 | 0.75 | 0.73 |
| CCC.WA | CCC SA | 0.22 | 0.81 | 0.7 |
| TOD.MI | Tod's SpA | 0.49 | 0.92 | 0.67 |
| Low | High | |
| Unlevered beta | 0.54 | 0.68 |
| Relevered beta | 0.73 | 0.93 |
| Adjusted relevered beta | 0.82 | 0.95 |
WWW'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 WWW:
cost_of_equity (8.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.82) + 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.