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 14.90%.

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

	Range	Selected
Cost of equity	10.40% - 19.40%	14.90%
Tax rate	16.20% - 24.80%	20.50%
Cost of debt	6.10% - 8.50%	7.30%
WACC	6.8% - 10.5%	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	1.42	2.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	19.40%

Tax rate	16.20%	24.80%
Debt/Equity ratio	2.14	2.14
Cost of debt	6.10%	8.50%

After-tax WACC	6.8%	10.5%


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 (14.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.42) + 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.