REV WACC - Weighted Average Cost of Capital

The WACC of Revlon Inc (REV) is 12.0%.

The Cost of Equity of Revlon Inc (REV) is 11.90%.

The Cost of Debt of Revlon Inc (REV) is 12.50%.

	Range	Selected
Cost of equity	8.50% - 15.30%	11.90%
Tax rate	3.30% - 4.00%	3.65%
Cost of debt	6.80% - 18.20%	12.50%
WACC	7.0% - 17.0%	12.0%

WACC

REV WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	5.0%	6.0%
Adjusted beta	0.87	1.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	15.30%

Tax rate	3.30%	4.00%
Debt/Equity ratio	3.53	3.53
Cost of debt	6.80%	18.20%

After-tax WACC	7.0%	17.0%


Selected WACC	12.0%

REV'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 REV:

cost_of_equity (11.90%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.87) + 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.