Skip to content

Pricesmart Inc (PSMT) — WACC Analysis

WACC Breakdown

Pricesmart Inc (PSMT) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 8.5%, derived from a beta of 0.67 and a risk-free rate of 5.2%. The after-tax cost of debt is 10.6%. The capital structure is 97.8% equity and 2.2% debt.

Interpretation

A WACC of 8.6% is moderate, reflecting the market's balanced risk assessment of Pricesmart Inc.

Investors can compare PSMT's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 0.67 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

PSMT WACC: 8.56% for Pricesmart Inc

Current inputs imply a 8.52% cost of equity and a 13.37% 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

Pricesmart Inc Common Stock (PSMT) WACC Results
Weighted Average Cost of Capital
8.56%
Cost of Equity
8.52%
Risk-Free Rate5.22%
Beta0.67
Market Risk Premium4.23%
Cost of Debt
10.56%
Pre-Tax Cost of Debt13.37%
Tax Rate21.00%
Tax Shield2.81%
Capital Structure
Equity: 97.79%($5223.14M)
Debt: 2.21%($117.81M)
Equity Component
8.33%
97.79% × 8.52%
Debt Component
0.23%
2.21% × 10.56%

Pricesmart Inc (PSMT) WACC in context

Pricesmart Inc (PSMT) currently screens with an estimated WACC of 8.56%. That blends a 8.52% cost of equity, a 13.37% pre-tax cost of debt, and a 97.79% 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 PSMT WACC implies

A 8.56% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PSMT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.67 and equity accounts for 97.79% 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.