Question 1

What is Designer Brands Inc.'s WACC?

Accepted Answer

Designer Brands Inc. (DBI) has a Weighted Average Cost of Capital (WACC) of 5.71%. This is calculated using a Cost of Equity of 10.29% (via CAPM with a beta of 1.57) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 47.39% in the capital structure.

Question 2

Is Designer Brands Inc.'s WACC high or low?

Accepted Answer

Designer Brands Inc.'s WACC of 5.71% 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 Designer Brands Inc.'s WACC calculated?

Accepted Answer

Designer Brands Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 10.29% is derived from the CAPM model using a beta of 1.57. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 47.39% equity and 52.61% debt.

Designer Brands Inc. (DBI) — WACC 分析

WACC 构成

解读

Designer Brands Inc.（DBI）WACC：5.71%

WACC计算器

Designer Brands Inc.（DBI） WACC 解读

DBI 公司分析

DBI DCF 估值

继续做同行对比