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Azzas 2154BSP:AZZA3 -1.93%79 WACC % is 15.31% as of Jul. 15, 2026, which is 75% above its 10-year median of 8.77. GuruFocus rates BSP:AZZA3 with a GF Score™ of 79/100 and a GF Value™ of R$50.94 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 1,080 Manufacturing - Apparel & Accessories companies, Azzas 2154 ranks worse than 94.44% on this metric.
As of today (2026-07-15), Azzas 2154's weighted average cost of capital is 15.31%%. Azzas 2154's ROIC % is 8.33% (calculated using TTM income statement data).
Azzas 2154 earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Azzas 2154 (BSP:AZZA3) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Azzas 2154's weighted average cost of capital is 15.31%%. Azzas 2154's ROIC % is 8.33% (calculated using TTM income statement data).
Azzas 2154 earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Azzas 2154 WACC % Historical Data
* Premium members only.
The historical data trend for Azzas 2154's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Footwear & Accessories subindustry, Azzas 2154's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Azzas 2154 WACC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Azzas 2154's WACC % distribution charts can be found below:
* The bar in red indicates where Azzas 2154's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Azzas 2154's market capitalization (E) is R$3811.016 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Azzas 2154's latest one-year quarterly average Book Value of Debt (D) is R$3945.3412 Mil.
a) weight of equity = E / (E + D) = 3811.016 / (3811.016 + 3945.3412) = 0.4913
b) weight of debt = D / (E + D) = 3945.3412 / (3811.016 + 3945.3412) = 0.5087
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.547%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Azzas 2154's beta is 1.3047.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.547% + 1.3047 * 6% = 12.3752%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Azzas 2154's interest expense (positive number) was R$715.917 Mil. Its total Book Value of Debt (D) is R$3945.3412 Mil.
Cost of Debt = 715.917 / 3945.3412 = 18.1459%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = -636.246 / 195.773 = -324.99%, which is less than 0%. Therefore it's set to 0%.
Azzas 2154's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.4913
*
12.3752%
+
0.5087
*
18.1459%
*
(1 - 0%)
=
15.31%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Azzas 2154 (BSP:AZZA3) has a WACC % of 15.31% as of Jul. 15, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Azzas 2154 and its competitors. This is 75% above median its historical median of 8.77. Over the past decade, Azzas 2154's WACC % has ranged from 6.38 to 15.34. According to the industry distribution chart, Azzas 2154 ranks #1020 out of 1080 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 94.4%.
Is Azzas 2154's WACC % too high?
Azzas 2154's current WACC % of 15.31% is 75% above median its 10-year median of 8.77. Over the past 10 years, this metric has ranged from a low of 6.38 to a high of 15.34. The Manufacturing - Apparel & Accessories industry median WACC % is 8.56. Azzas 2154's value of 15.31% is 78.9% above this industry median. Based on the distribution chart, Azzas 2154 ranks #1020 out of 1080 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Azzas 2154 has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Azzas 2154's WACC % compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Azzas 2154 ranks #1020 out of 1080 companies for WACC %. This places Azzas 2154 in the lower half of its industry. The industry median WACC % is 8.56. Azzas 2154's value of 15.31% is 78.9% above this benchmark. Historically, Azzas 2154's own WACC % has ranged from 6.38 to 15.34 over the past decade. While the company's 10-year median is 8.77 vs. the industry median of 8.56, Azzas 2154 has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Manufacturing - Apparel & Accessories company?
The median WACC % among Manufacturing - Apparel & Accessories companies is 8.56, based on 1,080 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Azzas 2154's current WACC % of 15.31% is 78.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Azzas 2154 and its competitors. For the Manufacturing - Apparel & Accessories industry, the median WACC % is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azzas 2154's current WACC % is 15.31%, which is 75% above median its own 10-year median of 8.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azzas 2154 stock overvalued right now?
Based on GuruFocus' analysis, Azzas 2154 (BSP:AZZA3) is currently considered Possible Value Trap. The stock's GF Value™ is R$50.94, compared to a current price of R$18.85 — trading 63% below its estimated fair value. The current WACC % is 15.31%, which is 75% above median its 10-year median of 8.77 and 78.9% above the Manufacturing - Apparel & Accessories industry median of 8.56. Azzas 2154's overall GF Score™ is 79/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Azzas 2154 (BSP:AZZA3), the current WACC % is 15.31% as of Jul. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Azzas 2154 (BSP:AZZA3) Overvalued in 2026?
Based on GuruFocus' analysis, Azzas 2154 stock appears to be undervalued.
The current stock price of R$18.85 is trading 63% below its estimated GF Value™ of R$50.94.
GuruFocus considers Azzas 2154 to be Possible Value Trap.
Key valuation signals for BSP:AZZA3:
WACC %: 15.31% (75% above median its 10-year median of 8.77)
GF Value™: R$50.94 vs. price of R$18.85 (63% below fair value)
Industry Position: 78.9% above the Manufacturing - Apparel & Accessories median (#1020 of 1080)
No single metric tells the full story. See the BSP:AZZA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Azzas 2154 SA, along with its subsidiaries, is engaged in the manufacturing, development, modeling and retail and wholesale trade of footwear, handbags, accessories and clothing for the women's, men's and democratic markets, particularly the women's market. The company also operates an online sales channel that makes available products of the brands Arezzo, Schutz, Anacapri, Alexandre Birman, Vans, Vicenza, Farm Rio, Animale, NV, Cris Barros, Maria Filó, Carol Bassi, Fábula, Off Premium, Reserva, Oficina, Foxton, Reserva Mini, Reserva Go, Reserva Ink, Hering, Hering Kids, Hering Sports, Hering Shoes and Hering Intimates. The majority of the company's revenue is derived from the sales of its products.
79GF Score
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