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Caleres Inc (CAL) — WACC Analysis

WACC Breakdown

Caleres Inc (CAL) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 10.3%, derived from a beta of 1.31 and a risk-free rate of 5.2%. The after-tax cost of debt is 6.2%. The capital structure is 58.5% equity and 41.5% debt.

Interpretation

A WACC of 8.6% is moderate, reflecting the market's balanced risk assessment of Caleres Inc.

Investors can compare CAL's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 1.31 reflects the stock's volatility relative to the broader market.

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VALUATION

CAL WACC: 8.62% for Caleres Inc

Current inputs imply a 10.32% cost of equity and a 6.23% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Caleres Inc Common Stock (CAL) WACC Results
Weighted Average Cost of Capital
8.62%
Cost of Equity
10.32%
Risk-Free Rate5.22%
Beta1.31
Market Risk Premium4.23%
Cost of Debt
6.23%
Pre-Tax Cost of Debt6.23%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 58.45%($417.17M)
Debt: 41.55%($296.50M)
Equity Component
6.03%
58.45% × 10.32%
Debt Component
2.59%
41.55% × 6.23%

Caleres Inc (CAL) WACC in context

Caleres Inc (CAL) currently screens with an estimated WACC of 8.62%. That blends a 10.32% cost of equity, a 6.23% pre-tax cost of debt, and a 58.45% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What CAL WACC implies

A 8.62% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates CAL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.31 and equity accounts for 58.45% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.