FLL
Full House Resorts Inc
Price:  
3.89 
USD
Volume:  
506,827.00
United States | Hotels, Restaurants & Leisure
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FLL WACC - Weighted Average Cost of Capital

The WACC of Full House Resorts Inc (FLL) is 13.4%.

The Cost of Equity of Full House Resorts Inc (FLL) is 6.95%.
The Cost of Debt of Full House Resorts Inc (FLL) is 15.90%.

Range Selected
Cost of equity 5.40% - 8.50% 6.95%
Tax rate 2.20% - 3.90% 3.05%
Cost of debt 7.90% - 23.90% 15.90%
WACC 7.2% - 19.6% 13.4%
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 0.34 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 8.50%
Tax rate 2.20% 3.90%
Debt/Equity ratio 3.36 3.36
Cost of debt 7.90% 23.90%
After-tax WACC 7.2% 19.6%
Selected WACC 13.4%

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 (6.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.