Question 1

What is Torrid Holdings Inc.'s WACC?

Accepted Answer

Torrid Holdings Inc. (CURV) has a Weighted Average Cost of Capital (WACC) of 4.85%. This is calculated using a Cost of Equity of 9.72% (via CAPM with a beta of 1.37) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 36.88% in the capital structure.

Question 2

Is Torrid Holdings Inc.'s WACC high or low?

Accepted Answer

Torrid Holdings Inc.'s WACC of 4.85% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Torrid Holdings Inc.'s WACC calculated?

Accepted Answer

Torrid Holdings Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.72% is derived from the CAPM model using a beta of 1.37. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 36.88% equity and 63.12% debt.

Torrid Holdings Inc. (CURV) — WACC 分析

WACC 构成

解读

Torrid Holdings Inc.（CURV）WACC：4.85%

WACC计算器

Torrid Holdings Inc.（CURV） WACC 解读

CURV 公司分析

CURV DCF 估值

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