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Regis Corporation (RGS) — WACC Analysis

WACC Breakdown

Regis Corporation (RGS) has a weighted average cost of capital (WACC) of 12.4%. The cost of equity is 8.9%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 14.4%. The capital structure is 36.9% equity and 63.1% debt.

Interpretation

A WACC of 12.4% indicates that the market perceives Regis Corporation as higher-risk, requiring a greater return to compensate investors.

Investors can compare RGS's WACC of 12.4% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

RGS WACC: 12.37% for Regis Corporation

Current inputs imply a 8.90% cost of equity and a 18.23% 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

Regis Corporation Common Stock (RGS) WACC Results
Weighted Average Cost of Capital
12.37%
Cost of Equity
8.90%
Risk-Free Rate4.67%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
14.40%
Pre-Tax Cost of Debt18.23%
Tax Rate21.00%
Tax Shield3.83%
Capital Structure
Equity: 36.91%($67.47M)
Debt: 63.09%($115.32M)
Equity Component
3.28%
36.91% × 8.90%
Debt Component
9.09%
63.09% × 14.40%

Regis Corporation (RGS) WACC in context

Regis Corporation (RGS) currently screens with an estimated WACC of 12.37%. That blends a 8.90% cost of equity, a 18.23% pre-tax cost of debt, and a 36.91% 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 RGS WACC implies

A 12.37% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates RGS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 36.91% 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.