Dick's Sporting Goods Inc (DKS) WACC Analysis

As of June 12, 2025, Dick's Sporting Goods Inc (DKS) carries a Weighted Average Cost of Capital (WACC) of 8.5%. WACC reflects the blended rate Dick's Sporting Goods Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.6%, the cost of debt is 4.1%, and the effective tax rate is 23.6%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.81 – 1
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.1

What It Means for Investors

With a selected WACC of 8.5%, Dick's Sporting Goods Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.