CURO
CURO Group Holdings Corp
Price:  
0.04 
USD
Volume:  
285,065.00
United States | Consumer Finance
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CURO WACC - Weighted Average Cost of Capital

The WACC of CURO Group Holdings Corp (CURO) is 12.0%.

The Cost of Equity of CURO Group Holdings Corp (CURO) is 1,185.85%.
The Cost of Debt of CURO Group Holdings Corp (CURO) is 12.55%.

Range Selected
Cost of equity 1,028.20% - 1,343.50% 1,185.85%
Tax rate 15.40% - 19.80% 17.60%
Cost of debt 5.20% - 19.90% 12.55%
WACC 6.0% - 18.0% 12.0%
WACC

CURO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 222.67 239.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 1,028.20% 1,343.50%
Tax rate 15.40% 19.80%
Debt/Equity ratio 659.42 659.42
Cost of debt 5.20% 19.90%
After-tax WACC 6.0% 18.0%
Selected WACC 12.0%

CURO'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 CURO:

cost_of_equity (1,185.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (222.67) + 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.