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Callaway Golf Company (CALY) — WACC Analysis

WACC Breakdown

Callaway Golf Company (CALY) has a weighted average cost of capital (WACC) of 10.7%. The cost of equity is 9.4%, derived from a beta of 1.00 and a risk-free rate of 5.2%. The after-tax cost of debt is 76.5%. The capital structure is 98.1% equity and 1.9% debt.

Interpretation

A WACC of 10.7% is moderate, reflecting the market's balanced risk assessment of Callaway Golf Company.

Investors can compare CALY's WACC of 10.7% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

CALY WACC: 10.72% for Callaway Golf Company

Current inputs imply a 9.45% cost of equity and a 96.82% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Callaway Golf Company Common Stock (CALY) WACC Results
Weighted Average Cost of Capital
10.72%
Cost of Equity
9.45%
Risk-Free Rate5.22%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
76.49%
Pre-Tax Cost of Debt96.82%
Tax Rate21.00%
Tax Shield20.33%
Capital Structure
Equity: 98.10%($2440.24M)
Debt: 1.90%($47.20M)
Equity Component
9.27%
98.10% × 9.45%
Debt Component
1.45%
1.90% × 76.49%

Callaway Golf Company (CALY) WACC in context

Callaway Golf Company (CALY) currently screens with an estimated WACC of 10.72%. That blends a 9.45% cost of equity, a 96.82% pre-tax cost of debt, and a 98.10% 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 CALY WACC implies

A 10.72% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates CALY

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 98.10% 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.