Skip to content

America's Car Mart Inc (CRMT) — WACC Analysis

WACC Breakdown

America's Car Mart Inc (CRMT) has a weighted average cost of capital (WACC) of 12.3%. The cost of equity is 10.4%, derived from a beta of 1.35 and a risk-free rate of 5.2%. The after-tax cost of debt is 12.3%. The capital structure is 1.7% equity and 98.3% debt.

Interpretation

A WACC of 12.3% indicates that the market perceives America's Car Mart Inc as higher-risk, requiring a greater return to compensate investors.

Investors can compare CRMT's WACC of 12.3% against industry peers to gauge its relative financing costs. A beta of 1.35 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

CRMT WACC: 12.26% for America's Car Mart Inc

Current inputs imply a 10.44% cost of equity and a 12.29% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

America's Car Mart Inc Common Stock (CRMT) WACC Results
Weighted Average Cost of Capital
12.26%
Cost of Equity
10.44%
Risk-Free Rate5.22%
Beta1.35
Market Risk Premium4.23%
Cost of Debt
12.29%
Pre-Tax Cost of Debt12.29%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 1.73%($10.97M)
Debt: 98.27%($623.86M)
Equity Component
0.18%
1.73% × 10.44%
Debt Component
12.08%
98.27% × 12.29%

America's Car Mart Inc (CRMT) WACC in context

America's Car Mart Inc (CRMT) currently screens with an estimated WACC of 12.26%. That blends a 10.44% cost of equity, a 12.29% pre-tax cost of debt, and a 1.73% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What CRMT WACC implies

A 12.26% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates CRMT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.35 and equity accounts for 1.73% 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.