Stein Mart Inc (SMRTQ) WACC Analysis

As of June 20, 2025, Stein Mart Inc (SMRTQ) carries a Weighted Average Cost of Capital (WACC) of 5.8%. WACC reflects the blended rate Stein Mart Inc must pay to both equity and debt holders.

Within that, the cost of equity is 264.9%, the cost of debt is 4.1%, and the effective tax rate is 22.1%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 61.73 – 86.25
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 188.09

What It Means for Investors

With a selected WACC of 5.8%, Stein Mart Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.