REPX
Riley Exploration Permian Inc
Price:  
26.72 
USD
Volume:  
94,182.00
United States | Oil, Gas & Consumable Fuels
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REPX WACC - Weighted Average Cost of Capital

The WACC of Riley Exploration Permian Inc (REPX) is 130.3%.

The Cost of Equity of Riley Exploration Permian Inc (REPX) is 9.10%.
The Cost of Debt of Riley Exploration Permian Inc (REPX) is 535.00%.

Range Selected
Cost of equity 8.10% - 10.10% 9.10%
Tax rate 22.90% - 23.80% 23.35%
Cost of debt 4.90% - 1,065.10% 535.00%
WACC 6.8% - 253.9% 130.3%
WACC

REPX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.92 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.10%
Tax rate 22.90% 23.80%
Debt/Equity ratio 0.44 0.44
Cost of debt 4.90% 1,065.10%
After-tax WACC 6.8% 253.9%
Selected WACC 130.3%

REPX'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 REPX:

cost_of_equity (9.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.92) + 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.