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Crocs, Inc. (CROX) — WACC Analysis

WACC Breakdown

Crocs, Inc. (CROX) has a weighted average cost of capital (WACC) of 9.8%. The cost of equity is 10.7%, derived from a beta of 1.52 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.9%. The capital structure is 84.2% equity and 15.8% debt.

Interpretation

A WACC of 9.8% is moderate, reflecting the market's balanced risk assessment of Crocs, Inc..

Investors can compare CROX's WACC of 9.8% against industry peers to gauge its relative financing costs. A beta of 1.52 reflects the stock's volatility relative to the broader market.

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VALUATION

CROX WACC: 9.77% for Crocs, Inc.

Current inputs imply a 10.68% cost of equity and a 6.26% 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

Crocs, Inc. Common Stock (CROX) WACC Results
Weighted Average Cost of Capital
9.77%
Cost of Equity
10.68%
Risk-Free Rate4.98%
Beta1.52
Market Risk Premium4.23%
Cost of Debt
4.95%
Pre-Tax Cost of Debt6.26%
Tax Rate21.00%
Tax Shield1.31%
Capital Structure
Equity: 84.20%($6870.64M)
Debt: 15.80%($1289.04M)
Equity Component
8.99%
84.20% × 10.68%
Debt Component
0.78%
15.80% × 4.95%

Crocs, Inc. (CROX) WACC in context

Crocs, Inc. (CROX) currently screens with an estimated WACC of 9.77%. That blends a 10.68% cost of equity, a 6.26% pre-tax cost of debt, and a 84.20% 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 CROX WACC implies

A 9.77% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates CROX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.52 and equity accounts for 84.20% 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.