BRY
Berry Corporation (Bry)
Price:  
2.92 
USD
Volume:  
833,874.00
United States | Oil, Gas & Consumable Fuels
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BRY WACC - Weighted Average Cost of Capital

The WACC of Berry Corporation (Bry) (BRY) is 8.7%.

The Cost of Equity of Berry Corporation (Bry) (BRY) is 14.35%.
The Cost of Debt of Berry Corporation (Bry) (BRY) is 7.30%.

Range Selected
Cost of equity 10.30% - 18.40% 14.35%
Tax rate 16.20% - 24.80% 20.50%
Cost of debt 6.10% - 8.50% 7.30%
WACC 6.9% - 10.6% 8.7%
WACC

BRY WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.4 2.42
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.30% 18.40%
Tax rate 16.20% 24.80%
Debt/Equity ratio 1.9 1.9
Cost of debt 6.10% 8.50%
After-tax WACC 6.9% 10.6%
Selected WACC 8.7%

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 (14.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.4) + 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.