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G-Iii Apparel Group Ltd (GIII) — WACC Analysis

WACC Breakdown

G-Iii Apparel Group Ltd (GIII) has a weighted average cost of capital (WACC) of 9.7%. The cost of equity is 9.8%, derived from a beta of 1.21 and a risk-free rate of 5.0%. The after-tax cost of debt is 1.6%. The capital structure is 99.3% equity and 0.7% debt.

Interpretation

A WACC of 9.7% is moderate, reflecting the market's balanced risk assessment of G-Iii Apparel Group Ltd.

Investors can compare GIII's WACC of 9.7% against industry peers to gauge its relative financing costs. A beta of 1.21 reflects the stock's volatility relative to the broader market.

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VALUATION

GIII WACC: 9.74% for G-Iii Apparel Group Ltd

Current inputs imply a 9.79% cost of equity and a 2.00% 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

G-Iii Apparel Group Ltd Common Stock (GIII) WACC Results
Weighted Average Cost of Capital
9.74%
Cost of Equity
9.79%
Risk-Free Rate4.97%
Beta1.21
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 99.35%($1193.25M)
Debt: 0.65%($7.83M)
Equity Component
9.73%
99.35% × 9.79%
Debt Component
0.01%
0.65% × 1.58%

G-Iii Apparel Group Ltd (GIII) WACC in context

G-Iii Apparel Group Ltd (GIII) currently screens with an estimated WACC of 9.74%. That blends a 9.79% cost of equity, a 2.00% pre-tax cost of debt, and a 99.35% 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 GIII WACC implies

A 9.74% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates GIII

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.21 and equity accounts for 99.35% 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.