CLUBQ WACC - Weighted Average Cost of Capital
The WACC of Town Sports International Holdings Inc (CLUBQ) is 5.9%.
| Range | Selected | |
| Cost of equity | 49842.1% - 163456.3% | 106649.2% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.5% - 7.0% | 5.75% |
| WACC | 4.1% - 7.7% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 10834.4 | 29187.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 49842.1% | 163456.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 63244.87 | 63244.87 |
| Cost of debt | 4.5% | 7.0% |
| After-tax WACC | 4.1% | 7.7% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CLUBQ | Town Sports International Holdings Inc | 63244.87 | 1.57 | 0 |
| AAP.H.V | Alpha Peak Leisure Inc | 0.02 | 0.96 | 0.94 |
| DS | Drive Shack Inc | 3.99 | 1.45 | 0.37 |
| ICE.TO | Canlan Ice Sports Corp | 0.88 | -0.1 | -0.06 |
| PRKA | Parks! America Inc | 0.13 | 1.08 | 0.99 |
| SEAS | SeaWorld Entertainment Inc | 0.66 | 1.4 | 0.94 |
| SIX | Six Flags Entertainment Corp | 0.88 | 1.94 | 1.18 |
| TWC.TO | TWC Enterprises Ltd | 0.05 | 0.33 | 0.32 |
| BOWL.L | Hollywood Bowl Group PLC | 0.53 | 1.33 | 0.96 |
| Low | High | |
| Unlevered beta | 0.49 | 0.94 |
| Relevered beta | 16170.25 | 43563.33 |
| Adjusted relevered beta | 10834.4 | 29187.76 |
CLUBQ'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 CLUBQ:
cost_of_equity (106,649.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (10834.4) + 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.