BALY WACC - Weighted Average Cost of Capital

The WACC of Bally's Corp (BALY) is 14.2%.

The Cost of Equity of Bally's Corp (BALY) is 10.55%.

The Cost of Debt of Bally's Corp (BALY) is 15.40%.

	Range	Selected
Cost of equity	7.90% - 13.20%	10.55%
Tax rate	3.30% - 4.80%	4.05%
Cost of debt	6.90% - 23.90%	15.40%
WACC	6.8% - 21.5%	14.2%

WACC

BALY WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.89	1.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	13.20%

Tax rate	3.30%	4.80%
Debt/Equity ratio	6.81	6.81
Cost of debt	6.90%	23.90%

After-tax WACC	6.8%	21.5%


Selected WACC	14.2%

BALY's CAPM model and how its cost of Equity is calculated

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 BALY:

cost_of_equity (10.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.89) + 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.