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RCI Hospitality Holdings, Inc. (RICK) — WACC Analysis

WACC Breakdown

RCI Hospitality Holdings, Inc. (RICK) has a weighted average cost of capital (WACC) of 7.6%. The cost of equity is 9.9%, derived from a beta of 1.16 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.7%. The capital structure is 45.7% equity and 54.3% debt.

Interpretation

A WACC of 7.6% suggests that the market views RCI Hospitality Holdings, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare RICK's WACC of 7.6% against industry peers to gauge its relative financing costs. A beta of 1.16 reflects the stock's volatility relative to the broader market.

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VALUATION

RICK WACC: 7.64% for RCI Hospitality Holdings, Inc.

Current inputs imply a 9.90% cost of equity and a 7.26% 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

RCI Hospitality Holdings, Inc. Common Stock (RICK) WACC Results
Weighted Average Cost of Capital
7.64%
Cost of Equity
9.90%
Risk-Free Rate5.22%
Beta1.16
Market Risk Premium4.23%
Cost of Debt
5.74%
Pre-Tax Cost of Debt7.26%
Tax Rate21.00%
Tax Shield1.53%
Capital Structure
Equity: 45.69%($201.97M)
Debt: 54.31%($240.09M)
Equity Component
4.52%
45.69% × 9.90%
Debt Component
3.12%
54.31% × 5.74%

RCI Hospitality Holdings, Inc. (RICK) WACC in context

RCI Hospitality Holdings, Inc. (RICK) currently screens with an estimated WACC of 7.64%. That blends a 9.90% cost of equity, a 7.26% pre-tax cost of debt, and a 45.69% 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 RICK WACC implies

A 7.64% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates RICK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.16 and equity accounts for 45.69% 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.