HOFV WACC - Weighted Average Cost of Capital
The WACC of Hall of Fame Resort & Entertainment Co (HOFV) is 4.6%.
| Range | Selected | |
| Cost of equity | 7.8% - 45.1% | 26.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.2% - 7.0% | 5.6% |
| WACC | 3.2% - 6.0% | 4.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.86 | 7.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 45.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 44.05 | 44.05 |
| Cost of debt | 4.2% | 7.0% |
| After-tax WACC | 3.2% | 6.0% |
| Selected WACC | 4.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HOFV | Hall of Fame Resort & Entertainment Co | 44.05 | 0.93 | 0.03 |
| ARHN | Archon Corp | 0.45 | 0.18 | 0.14 |
| BFI | Burgerfi International Inc | 5455.2 | -0.8 | 0 |
| BPF.UN.TO | Boston Pizza Royalties Income Fund | 0.22 | 0.84 | 0.73 |
| COFE | Cafe Holdings Inc | 2.01 | -1.36 | -0.55 |
| FAT | FAT Brands Inc | 25.72 | 0.34 | 0.02 |
| GHG | GreenTree Hospitality Group Ltd | 0.12 | 0.62 | 0.57 |
| NROM | Noble Roman's Inc | 1.61 | -0.36 | -0.17 |
| PZA.TO | Pizza Pizza Royalty Corp | 0.13 | 0.62 | 0.56 |
| RICK | RCI Hospitality Holdings Inc | 0.64 | 0.92 | 0.63 |
| Low | High | |
| Unlevered beta | 0.02 | 0.31 |
| Relevered beta | 0.79 | 10.22 |
| Adjusted relevered beta | 0.86 | 7.18 |
HOFV'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 HOFV:
cost_of_equity (26.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.86) + 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.