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Battalion Oil Corporation (BATL) — WACC Analysis

WACC Breakdown

Battalion Oil Corporation (BATL) has a weighted average cost of capital (WACC) of 13.5%. The cost of equity is 6.8%, derived from a beta of 0.05 and a risk-free rate of 5.2%. The after-tax cost of debt is 16.0%. The capital structure is 27.0% equity and 73.0% debt.

Interpretation

A WACC of 13.5% indicates that the market perceives Battalion Oil Corporation as higher-risk, requiring a greater return to compensate investors.

Investors can compare BATL's WACC of 13.5% against industry peers to gauge its relative financing costs. A beta of 0.05 reflects the stock's volatility relative to the broader market.

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VALUATION

BATL WACC: 13.49% for Battalion Oil Corporation

Current inputs imply a 6.77% cost of equity and a 15.97% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Battalion Oil Corporation Common Stock (BATL) WACC Results
Weighted Average Cost of Capital
13.49%
Cost of Equity
6.77%
Risk-Free Rate5.22%
Beta0.05
Market Risk Premium4.23%
Cost of Debt
15.97%
Pre-Tax Cost of Debt15.97%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 26.97%($58.43M)
Debt: 73.03%($158.24M)
Equity Component
1.83%
26.97% × 6.77%
Debt Component
11.66%
73.03% × 15.97%

Battalion Oil Corporation (BATL) WACC in context

Battalion Oil Corporation (BATL) currently screens with an estimated WACC of 13.49%. That blends a 6.77% cost of equity, a 15.97% pre-tax cost of debt, and a 26.97% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What BATL WACC implies

A 13.49% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates BATL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.05 and equity accounts for 26.97% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.