RILY
B. Riley Financial Inc
Price:  
5.85 
USD
Volume:  
315,308.00
United States | Capital Markets
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

RILY WACC - Weighted Average Cost of Capital

The WACC of B. Riley Financial Inc (RILY) is 5.5%.

The Cost of Equity of B. Riley Financial Inc (RILY) is 12.70%.
The Cost of Debt of B. Riley Financial Inc (RILY) is 6.45%.

Range Selected
Cost of equity 9.00% - 16.40% 12.70%
Tax rate 23.90% - 26.80% 25.35%
Cost of debt 5.90% - 7.00% 6.45%
WACC 4.9% - 6.1% 5.5%
WACC

RILY WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.11 2.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 16.40%
Tax rate 23.90% 26.80%
Debt/Equity ratio 10.45 10.45
Cost of debt 5.90% 7.00%
After-tax WACC 4.9% 6.1%
Selected WACC 5.5%

RILY'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 RILY:

cost_of_equity (12.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.11) + 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.