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Macy's Inc. (M) — WACC Analysis

WACC Breakdown

Macy's Inc. (M) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 10.5%, derived from a beta of 1.47 and a risk-free rate of 5.0%. The after-tax cost of debt is 1.6%. The capital structure is 70.8% equity and 29.2% debt.

Interpretation

A WACC of 7.9% suggests that the market views Macy's Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare M's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 1.47 reflects the stock's volatility relative to the broader market.

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VALUATION

M WACC: 7.91% for Macy's Inc.

Current inputs imply a 10.53% 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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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

Macy's Inc. Common Stock (M) WACC Results
Weighted Average Cost of Capital
7.91%
Cost of Equity
10.53%
Risk-Free Rate4.97%
Beta1.47
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 70.79%($5897.37M)
Debt: 29.21%($2433.00M)
Equity Component
7.45%
70.79% × 10.53%
Debt Component
0.46%
29.21% × 1.58%

Macy's Inc. (M) WACC in context

Macy's Inc. (M) currently screens with an estimated WACC of 7.91%. That blends a 10.53% cost of equity, a 2.00% pre-tax cost of debt, and a 70.79% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What M WACC implies

A 7.91% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates M

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.47 and equity accounts for 70.79% 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.

M WACC: 7.91% — Macy's Inc. Cost of Capital (September 2026) | DeepViews