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PVH Corp. (PVH) — WACC Analysis

WACC Breakdown

PVH Corp. (PVH) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 10.4%, derived from a beta of 1.41 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.2%. The capital structure is 64.6% equity and 35.4% debt.

Interpretation

A WACC of 7.9% suggests that the market views PVH Corp. as relatively low-risk, with a lower cost of financing.

Investors can compare PVH's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 1.41 reflects the stock's volatility relative to the broader market.

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VALUATION

PVH WACC: 7.88% for PVH Corp.

Current inputs imply a 10.44% cost of equity and a 4.07% 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

PVH Corp. Common Stock (PVH) WACC Results
Weighted Average Cost of Capital
7.88%
Cost of Equity
10.44%
Risk-Free Rate5.05%
Beta1.41
Market Risk Premium4.23%
Cost of Debt
3.21%
Pre-Tax Cost of Debt4.07%
Tax Rate21.00%
Tax Shield0.85%
Capital Structure
Equity: 64.55%($4072.59M)
Debt: 35.45%($2236.50M)
Equity Component
6.74%
64.55% × 10.44%
Debt Component
1.14%
35.45% × 3.21%

PVH Corp. (PVH) WACC in context

PVH Corp. (PVH) currently screens with an estimated WACC of 7.88%. That blends a 10.44% cost of equity, a 4.07% pre-tax cost of debt, and a 64.55% 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 PVH WACC implies

A 7.88% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates PVH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.41 and equity accounts for 64.55% 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.