BALY
Bally's Corp
Price:  
10.03 
USD
Volume:  
88,815.00
United States | Hotels, Restaurants & Leisure
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BALY WACC - Weighted Average Cost of Capital

The WACC of Bally's Corp (BALY) is 14.1%.

The Cost of Equity of Bally's Corp (BALY) is 10.40%.
The Cost of Debt of Bally's Corp (BALY) is 15.40%.

Range Selected
Cost of equity 8.00% - 12.80% 10.40%
Tax rate 3.30% - 4.80% 4.05%
Cost of debt 6.90% - 23.90% 15.40%
WACC 6.8% - 21.4% 14.1%
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 0.9 1.42
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 12.80%
Tax rate 3.30% 4.80%
Debt/Equity ratio 6.75 6.75
Cost of debt 6.90% 23.90%
After-tax WACC 6.8% 21.4%
Selected WACC 14.1%

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 (10.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.9) + 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.