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Kontoor Brands, Inc. Common Stock (KTB) — WACC Analysis

WACC Breakdown

Kontoor Brands, Inc. Common Stock (KTB) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 9.8%, derived from a beta of 1.11 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.9%. The capital structure is 75.8% equity and 24.2% debt.

Interpretation

A WACC of 8.6% is moderate, reflecting the market's balanced risk assessment of Kontoor Brands, Inc. Common Stock.

Investors can compare KTB's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 1.11 reflects the stock's volatility relative to the broader market.

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VALUATION

KTB WACC: 8.58% for Kontoor Brands, Inc. Common Stock

Current inputs imply a 9.76% cost of equity and a 6.17% 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

Kontoor Brands, Inc. Common Stock Common Stock (KTB) WACC Results
Weighted Average Cost of Capital
8.58%
Cost of Equity
9.76%
Risk-Free Rate5.22%
Beta1.11
Market Risk Premium4.23%
Cost of Debt
4.88%
Pre-Tax Cost of Debt6.17%
Tax Rate21.00%
Tax Shield1.30%
Capital Structure
Equity: 75.81%($3586.37M)
Debt: 24.19%($1144.17M)
Equity Component
7.40%
75.81% × 9.76%
Debt Component
1.18%
24.19% × 4.88%

Kontoor Brands, Inc. Common Stock (KTB) WACC in context

Kontoor Brands, Inc. Common Stock (KTB) currently screens with an estimated WACC of 8.58%. That blends a 9.76% cost of equity, a 6.17% pre-tax cost of debt, and a 75.81% 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 KTB WACC implies

A 8.58% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates KTB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.11 and equity accounts for 75.81% 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.