The WACC of Audacy Inc (AUD) is 9.9%.
| Range | Selected | |
| Cost of equity | 94.00% - 140.20% | 117.10% |
| Tax rate | 19.10% - 23.00% | 21.05% |
| Cost of debt | 5.30% - 18.20% | 11.75% |
| WACC | 4.9% - 14.9% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 17.96 | 22.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 94.00% | 140.20% |
| Tax rate | 19.10% | 23.00% |
| Debt/Equity ratio | 138.09 | 138.09 |
| Cost of debt | 5.30% | 18.20% |
| After-tax WACC | 4.9% | 14.9% |
| Selected WACC | 9.9% | |
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for Audacy:
cost_of_equity (117.10%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (17.96) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.