Question 1

What is Tapestry, Inc. Common Stock's WACC?

Accepted Answer

Tapestry, Inc. Common Stock (TPR) has a Weighted Average Cost of Capital (WACC) of 9.31%. This is calculated using a Cost of Equity of 9.35% (via CAPM with a beta of 1.29) and a pre-tax Cost of Debt of 11.24%, with an equity weight of 92.90% in the capital structure.

Question 2

Is Tapestry, Inc. Common Stock's WACC high or low?

Accepted Answer

Tapestry, Inc. Common Stock's WACC of 9.31% falls within the typical 8-12% range for mid-cap growth companies. 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 Tapestry, Inc. Common Stock's WACC calculated?

Accepted Answer

Tapestry, Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.35% is derived from the CAPM model using a beta of 1.29. The pre-tax Cost of Debt (Rd) is 11.24%. The capital structure is 92.90% equity and 7.10% debt.

Tapestry, Inc. Common Stock (TPR) — WACC 分析

WACC 构成

解读

Tapestry, Inc. Common Stock（TPR）WACC：9.31%

WACC计算器

Tapestry, Inc. Common Stock（TPR） WACC 解读

TPR 公司分析

TPR DCF 估值

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