GPORQ WACC - Weighted Average Cost of Capital

The WACC of Gulfport Energy Corp (GPORQ) is 12.1%.

The Cost of Equity of Gulfport Energy Corp (GPORQ) is 97.20%.

The Cost of Debt of Gulfport Energy Corp (GPORQ) is 9.55%.

	Range	Selected
Cost of equity	84.80% - 109.60%	97.20%
Tax rate	0.30% - 0.40%	0.35%
Cost of debt	6.00% - 13.10%	9.55%
WACC	8.3% - 15.9%	12.1%

WACC

GPORQ WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	4.2%	5.2%
Adjusted beta	19.25	20.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	84.80%	109.60%

Tax rate	0.30%	0.40%
Debt/Equity ratio	33.23	33.23
Cost of debt	6.00%	13.10%

After-tax WACC	8.3%	15.9%


Selected WACC	12.1%

GPORQ'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 GPORQ:

cost_of_equity (97.20%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (19.25) + 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.