CNTY WACC - Weighted Average Cost of Capital

The WACC of Century Casinos Inc (CNTY) is 13.1%.

The Cost of Equity of Century Casinos Inc (CNTY) is 15.55%.

The Cost of Debt of Century Casinos Inc (CNTY) is 17.15%.

	Range	Selected
Cost of equity	10.60% - 20.50%	15.55%
Tax rate	22.60% - 25.50%	24.05%
Cost of debt	10.40% - 23.90%	17.15%
WACC	8.2% - 17.9%	13.1%

WACC

CNTY WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.46	2.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	20.50%

Tax rate	22.60%	25.50%
Debt/Equity ratio	16.95	16.95
Cost of debt	10.40%	23.90%

After-tax WACC	8.2%	17.9%


Selected WACC	13.1%

CNTY'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 CNTY:

cost_of_equity (15.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.46) + 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.