G-III Apparel GroupSTU:GI4 -4.67%74 WACC % is 5.73% as of Jun. 30, 2026, which is 49% below its 10-year median of 11.24. GuruFocus rates STU:GI4 with a GF Score™ of 74/100 and a GF Value™ of €23.68 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,082 Manufacturing - Apparel & Accessories companies, G-III Apparel Group ranks better than 63.68% on this metric.
As of today (2026-06-30), G-III Apparel Group's weighted average cost of capital is 5.73%%. G-III Apparel Group's ROIC % is 8.44% (calculated using TTM income statement data).
G-III Apparel Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
G-III Apparel Group (STU:GI4) 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, G-III Apparel Group's weighted average cost of capital is 5.73%%. G-III Apparel Group's ROIC % is 8.44% (calculated using TTM income statement data).
G-III Apparel Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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
G-III Apparel Group WACC % Historical Data
* Premium members only.
The historical data trend for G-III Apparel Group'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 Apparel Manufacturing subindustry, G-III Apparel Group'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.
G-III Apparel Group WACC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, G-III Apparel Group's WACC % distribution charts can be found below:
* The bar in red indicates where G-III Apparel Group'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, G-III Apparel Group's market capitalization (E) is €1219.629 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 Apr. 2026, G-III Apparel Group's latest one-year quarterly average Book Value of Debt (D) is €249.7792 Mil.
a) weight of equity = E / (E + D) = 1219.629 / (1219.629 + 249.7792) = 0.83
b) weight of debt = D / (E + D) = 249.7792 / (1219.629 + 249.7792) = 0.17
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 4.469%. 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. G-III Apparel Group's beta is 0.4152.
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 = 4.469% + 0.4152 * 6% = 6.9602%
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 Apr. 2026, G-III Apparel Group's interest expense (positive number) was €-0.964 Mil. Its total Book Value of Debt (D) is €249.7792 Mil.
Cost of Debt = -0.964 / 249.7792 = -0.3859%.
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 = 50.297 / 158.61 = 31.71%.
G-III Apparel Group'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)
=
0.83
*
6.9602%
+
0.17
*
-0.3859%
*
(1 - 31.71%)
=
5.73%
* 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.
G-III Apparel Group (STU:GI4) has a WACC % of 5.73% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on G-III Apparel Group and its competitors. This is 49% below median its historical median of 11.24. Over the past decade, G-III Apparel Group's WACC % has ranged from 1.24 to 14.34. According to the industry distribution chart, G-III Apparel Group ranks #393 out of 1082 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 36.3%.
Is G-III Apparel Group's WACC % too high?
G-III Apparel Group's current WACC % of 5.73% is 49% below median its 10-year median of 11.24. Over the past 10 years, this metric has ranged from a low of 1.24 to a high of 14.34. The Manufacturing - Apparel & Accessories industry median WACC % is 8.41. G-III Apparel Group's value of 5.73% is 31.8% below this industry median. Based on the distribution chart, G-III Apparel Group ranks #393 out of 1082 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, G-III Apparel Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does G-III Apparel Group's WACC % compare to FIGS and OXM?
According to the Manufacturing - Apparel & Accessories industry distribution chart, G-III Apparel Group ranks #393 out of 1082 companies for WACC %. This puts G-III Apparel Group in the upper half of its industry. The industry median WACC % is 8.41. G-III Apparel Group's value of 5.73% is 31.8% below this benchmark. Historically, G-III Apparel Group's own WACC % has ranged from 1.24 to 14.34 over the past decade. While the company's 10-year median is 11.24 vs. the industry median of 8.41, G-III Apparel Group has consistently been below 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 8.41, based on 1,082 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. G-III Apparel Group's current WACC % of 5.73% is 31.8% below 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 G-III Apparel Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median WACC % is 8.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. G-III Apparel Group's current WACC % is 5.73%, which is 49% below median its own 10-year median of 11.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is G-III Apparel Group stock overvalued right now?
Based on GuruFocus' analysis, G-III Apparel Group (STU:GI4) is currently considered Modestly Overvalued. The stock's GF Value™ is €23.68, compared to a current price of €29.40 — trading 24.2% above its estimated fair value. The current WACC % is 5.73%, which is 49% below median its 10-year median of 11.24 and 31.8% below the Manufacturing - Apparel & Accessories industry median of 8.41. G-III Apparel Group's overall GF Score™ is 74/100 with 5 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 G-III Apparel Group (STU:GI4), the current WACC % is 5.73% as of Jun. 30, 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 G-III Apparel Group (STU:GI4) Overvalued in 2026?
Based on GuruFocus' analysis, G-III Apparel Group stock appears to be overvalued.
The current stock price of €29.40 is trading 24.2% above its estimated GF Value™ of €23.68.
GuruFocus considers G-III Apparel Group to be Modestly Overvalued.
Key valuation signals for STU:GI4:
WACC %: 5.73% (49% below median its 10-year median of 11.24)
GF Value™: €23.68 vs. price of €29.40 (24.2% above fair value)
Industry Position: 31.8% below the Manufacturing - Apparel & Accessories median (#393 of 1082)
No single metric tells the full story. See the STU:GI4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
G-III Apparel Group Ltd is an apparel manufacturing company. The company makes a wide range of apparel, footwear, and accessories that sells under its own brands, licensed brands, and private-label brands. It has a substantial portfolio for licensed and proprietary brands, anchored by brands: DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, and others. The reportable segments of the company are Wholesale Operations and Retail Operations. The Wholesale operations segment includes sales of products under brands licensed by from third parties, and sales of products under its own brands and private label brands. The retail operations segment consists of Wilsons Leather, G.H. Bass, and DKNY retail stores. It derives majority of its revenue from Wholesale operations.
74GF Score
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