Vera BradleyVRA +2.60%65 WACC % is 8.57% as of Jun. 27, 2026, which is 3% above its 10-year median of 8.30. GuruFocus rates VRA with a GF Score™ of 65/100 and a GF Value™ of $3.86 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,083 Manufacturing - Apparel & Accessories companies, Vera Bradley ranks worse than 50.69% on this metric.
As of today (2026-06-27), Vera Bradley's weighted average cost of capital is 8.57%%. Vera Bradley's ROIC % is -9.11% (calculated using TTM income statement data).
Vera Bradley 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.
Vera Bradley (NAS:VRA) 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, Vera Bradley's weighted average cost of capital is 8.57%%. Vera Bradley's ROIC % is -9.11% (calculated using TTM income statement data).
Vera Bradley 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
Vera Bradley WACC % Historical Data
* Premium members only.
The historical data trend for Vera Bradley'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, Vera Bradley'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.
Vera Bradley WACC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vera Bradley's WACC % distribution charts can be found below:
* The bar in red indicates where Vera Bradley'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, Vera Bradley's market capitalization (E) is $111.478 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, Vera Bradley's latest one-year quarterly average Book Value of Debt (D) is $77.7728 Mil.
a) weight of equity = E / (E + D) = 111.478 / (111.478 + 77.7728) = 0.589
b) weight of debt = D / (E + D) = 77.7728 / (111.478 + 77.7728) = 0.411
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 4.376%. 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. Vera Bradley's beta is 1.6171.
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 = 4.376% + 1.6171 * 6% = 14.0786%
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, Vera Bradley's interest expense (positive number) was $0.531 Mil. Its total Book Value of Debt (D) is $77.7728 Mil.
Cost of Debt = 0.531 / 77.7728 = 0.6828%.
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 = 0.008 / -19.234 = -0.04%, which is less than 0%. Therefore it's set to 0%.
Vera Bradley'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)
=
0.589
*
14.0786%
+
0.411
*
0.6828%
*
(1 - 0%)
=
8.57%
* 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.
Vera Bradley (VRA) has a WACC % of 8.57% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Vera Bradley and its competitors. This is near median its historical median of 8.30. Over the past decade, Vera Bradley's WACC % has ranged from 4.21 to 10.28. According to the industry distribution chart, Vera Bradley ranks #549 out of 1083 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 50.7%.
Is Vera Bradley's WACC % too high?
Vera Bradley's current WACC % of 8.57% is near median its 10-year median of 8.30. Over the past 10 years, this metric has ranged from a low of 4.21 to a high of 10.28. The Manufacturing - Apparel & Accessories industry median WACC % is 8.45. Vera Bradley's value of 8.57% is 1.4% above this industry median. Based on the distribution chart, Vera Bradley ranks #549 out of 1083 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Vera Bradley has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vera Bradley's WACC % compare to FMFC and AREB?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Vera Bradley ranks #549 out of 1083 companies for WACC %. This places Vera Bradley in the lower half of its industry. The industry median WACC % is 8.45. Vera Bradley's value of 8.57% is 1.4% above this benchmark. Historically, Vera Bradley's own WACC % has ranged from 4.21 to 10.28 over the past decade. While the company's 10-year median is 8.30 vs. the industry median of 8.45, Vera Bradley 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 8.45, based on 1,083 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. Vera Bradley's current WACC % of 8.57% is 1.4% 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 Vera Bradley and its competitors. For the Manufacturing - Apparel & Accessories industry, the median WACC % is 8.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vera Bradley's current WACC % is 8.57%, which is near median its own 10-year median of 8.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vera Bradley stock overvalued right now?
Based on GuruFocus' analysis, Vera Bradley (VRA) is currently considered Fairly Valued. The stock's GF Value™ is $3.86, compared to a current price of $3.92 — trading 1.6% above its estimated fair value. The current WACC % is 8.57%, which is near median its 10-year median of 8.30 and 1.4% above the Manufacturing - Apparel & Accessories industry median of 8.45. Vera Bradley's overall GF Score™ is 65/100 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 Vera Bradley (VRA), the current WACC % is 8.57% as of Jun. 27, 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 Vera Bradley (VRA) Overvalued in 2026?
Based on GuruFocus' analysis, Vera Bradley stock appears to be overvalued.
The current stock price of $3.92 is trading 1.6% above its estimated GF Value™ of $3.86.
GuruFocus considers Vera Bradley to be Fairly Valued.
Key valuation signals for VRA:
WACC %: 8.57% (near median its 10-year median of 8.30)
GF Value™: $3.86 vs. price of $3.92 (1.6% above fair value)
Industry Position: 1.4% above the Manufacturing - Apparel & Accessories median (#549 of 1083)
No single metric tells the full story. See the VRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vera Bradley Inc designs women's handbags, luggage, and travel items, fashion and home accessories, and gifts. Each category comprises a substantial component of total sales, with the bags category comprising the majority of the company's sales are made directly to customers through Vera Bradley's retail stores and e-commerce sites. The company also has a substantial wholesale business selling to specialty retail and department stores. Almost all company sales are in the United States. Vera Bradley uses third-party manufacturers in Asia to produce its products, and the company distributes the products through its distribution center in Indiana. The Company has three reportable segments: Vera Bradley Direct and Vera Bradley Indirect.
65GF Score
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