CCO WACC - Weighted Average Cost of Capital
The WACC of Clear Channel Outdoor Holdings Inc (CCO) is 14.1%.
| Range | Selected | |
| Cost of equity | 13.1% - 19.7% | 16.4% |
| Tax rate | 8.2% - 10.5% | 9.35% |
| Cost of debt | 7.0% - 23.9% | 15.45% |
| WACC | 7.1% - 21.2% | 14.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 2.01 | 2.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.1% | 19.7% |
| Tax rate | 8.2% | 10.5% |
| Debt/Equity ratio | 9.5 | 9.5 |
| Cost of debt | 7.0% | 23.9% |
| After-tax WACC | 7.1% | 21.2% |
| Selected WACC | 14.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CCO | Clear Channel Outdoor Holdings Inc | 9.5 | 1.75 | 0.18 |
| ADV | Advantage Solutions Inc | 3.32 | 1.44 | 0.36 |
| AIM.TO | Aimia Inc | 0.66 | 0.05 | 0.03 |
| CRTO | Criteo SA | 0 | 0.86 | 0.85 |
| ICLK | iClick Interactive Asia Group Ltd | 0.04 | -1.21 | -1.17 |
| MDCA | MDC Partners Inc | 2.02 | 0.89 | 0.31 |
| NCMI | National Cinemedia Inc | 0.02 | 0.36 | 0.36 |
| SCOR | Comscore Inc | 2.07 | 1.16 | 0.4 |
| THRY | Thryv Holdings Inc | 0.54 | 1.57 | 1.05 |
| UCPA | United Communications Partners Inc | 0.2 | -0.78 | -0.66 |
| Low | High | |
| Unlevered beta | 0.26 | 0.36 |
| Relevered beta | 2.51 | 3.45 |
| Adjusted relevered beta | 2.01 | 2.64 |
CCO'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 CCO:
cost_of_equity (16.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.01) + 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.