RHP
Ryman Hospitality Properties Inc
Price:  
101.02 
USD
Volume:  
534,019
United States | Equity Real Estate Investment Trusts (REITs)

RHP WACC - Weighted Average Cost of Capital

The WACC of Ryman Hospitality Properties Inc (RHP) is 7.6%.

The Cost of Equity of Ryman Hospitality Properties Inc (RHP) is 8.5%.
The Cost of Debt of Ryman Hospitality Properties Inc (RHP) is 6.45%.

RangeSelected
Cost of equity7.3% - 9.7%8.5%
Tax rate5.6% - 12.7%9.15%
Cost of debt5.4% - 7.5%6.45%
WACC6.5% - 8.6%7.6%
WACC

RHP WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.740.86
Additional risk adjustments0.0%0.5%
Cost of equity7.3%9.7%
Tax rate5.6%12.7%
Debt/Equity ratio
0.530.53
Cost of debt5.4%7.5%
After-tax WACC6.5%8.6%
Selected WACC7.6%

RHP'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 RHP:

cost_of_equity (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.74) + 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.