FLL
Full House Resorts Inc
Price:  
2.61 
USD
Volume:  
278,492.00
United States | Hotels, Restaurants & Leisure
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

FLL WACC - Weighted Average Cost of Capital

The WACC of Full House Resorts Inc (FLL) is 7.2%.

The Cost of Equity of Full House Resorts Inc (FLL) is 7.25%.
The Cost of Debt of Full House Resorts Inc (FLL) is 7.45%.

Range Selected
Cost of equity 5.40% - 9.10% 7.25%
Tax rate 2.20% - 3.90% 3.05%
Cost of debt 7.00% - 7.90% 7.45%
WACC 6.6% - 7.8% 7.2%
WACC

FLL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.32 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 9.10%
Tax rate 2.20% 3.90%
Debt/Equity ratio 5 5
Cost of debt 7.00% 7.90%
After-tax WACC 6.6% 7.8%
Selected WACC 7.2%

FLL'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 FLL:

cost_of_equity (7.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.32) + 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.