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Reading International, Inc Class A Common Stock (RDI) — WACC Analysis

WACC Breakdown

Reading International, Inc Class A Common Stock (RDI) has a weighted average cost of capital (WACC) of 6.2%. The cost of equity is 8.1%, derived from a beta of 0.53 and a risk-free rate of 5.2%. The after-tax cost of debt is 6.0%. The capital structure is 12.7% equity and 87.3% debt.

Interpretation

A WACC of 6.2% suggests that the market views Reading International, Inc Class A Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare RDI's WACC of 6.2% against industry peers to gauge its relative financing costs. A beta of 0.53 reflects the stock's volatility relative to the broader market.

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VALUATION

RDI WACC: 6.25% for Reading International, Inc Class A Common Stock

Current inputs imply a 8.12% cost of equity and a 5.97% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Reading International, Inc Class A Common Stock Common Stock (RDI) WACC Results
Weighted Average Cost of Capital
6.25%
Cost of Equity
8.12%
Risk-Free Rate5.22%
Beta0.53
Market Risk Premium4.23%
Cost of Debt
5.97%
Pre-Tax Cost of Debt5.97%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 12.70%($42.35M)
Debt: 87.30%($291.06M)
Equity Component
1.03%
12.70% × 8.12%
Debt Component
5.21%
87.30% × 5.97%

Reading International, Inc Class A Common Stock (RDI) WACC in context

Reading International, Inc Class A Common Stock (RDI) currently screens with an estimated WACC of 6.25%. That blends a 8.12% cost of equity, a 5.97% pre-tax cost of debt, and a 12.70% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What RDI WACC implies

A 6.25% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates RDI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.53 and equity accounts for 12.70% 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.