BRY WACC - Weighted Average Cost of Capital
The WACC of Berry Corporation (Bry) (BRY) is 8.7%.
| Range | Selected | |
| Cost of equity | 11.3% - 19.4% | 15.35% |
| Tax rate | 16.2% - 24.8% | 20.5% |
| Cost of debt | 5.1% - 8.5% | 6.8% |
| WACC | 6.7% - 10.8% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.63 | 2.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 19.4% |
| Tax rate | 16.2% | 24.8% |
| Debt/Equity ratio | 1.95 | 1.95 |
| Cost of debt | 5.1% | 8.5% |
| After-tax WACC | 6.7% | 10.8% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BRY | Berry Corporation (Bry) | 1.95 | 1.14 | 0.45 |
| ATH.TO | Athabasca Oil Corp | 0.07 | 1.91 | 1.81 |
| BCEI | Bonanza Creek Energy Inc | 0 | 1.99 | 1.99 |
| CNE.TO | Canacol Energy Ltd | 11.1 | 1.1 | 0.11 |
| GPRK | GeoPark Ltd | 1.57 | 0.85 | 0.38 |
| NOG | Northern Oil and Gas Inc | 0.83 | 1.34 | 0.81 |
| NVA.TO | Nuvista Energy Ltd | 0.1 | 1.53 | 1.42 |
| OBE.TO | Obsidian Energy Ltd | 0.65 | 1.92 | 1.27 |
| POU.TO | Paramount Resources Ltd | 0.06 | 1.85 | 1.76 |
| WTI | W&T Offshore Inc | 1.13 | 1.3 | 0.69 |
| Low | High | |
| Unlevered beta | 0.76 | 1.33 |
| Relevered beta | 1.94 | 3.39 |
| Adjusted relevered beta | 1.63 | 2.6 |
BRY'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 BRY:
cost_of_equity (15.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.63) + 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.