CCO
Clear Channel Outdoor Holdings Inc
Price:  
1.04 
USD
Volume:  
1,437,411.00
United States | Media
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CCO WACC - Weighted Average Cost of Capital

The WACC of Clear Channel Outdoor Holdings Inc (CCO) is 12.9%.

The Cost of Equity of Clear Channel Outdoor Holdings Inc (CCO) is 16.60%.
The Cost of Debt of Clear Channel Outdoor Holdings Inc (CCO) is 13.95%.

Range Selected
Cost of equity 13.50% - 19.70% 16.60%
Tax rate 8.20% - 10.50% 9.35%
Cost of debt 7.00% - 20.90% 13.95%
WACC 7.0% - 18.8% 12.9%
WACC

CCO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2.09 2.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 19.70%
Tax rate 8.20% 10.50%
Debt/Equity ratio 11.17 11.17
Cost of debt 7.00% 20.90%
After-tax WACC 7.0% 18.8%
Selected WACC 12.9%

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 (16.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.09) + 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.