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Ranger Energy Services, Inc. (RNGR) — WACC Analysis

WACC Breakdown

Ranger Energy Services, Inc. (RNGR) has a weighted average cost of capital (WACC) of 7.8%. The cost of equity is 8.1%, derived from a beta of 0.52 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.4%. The capital structure is 93.2% equity and 6.8% debt.

Interpretation

A WACC of 7.8% suggests that the market views Ranger Energy Services, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare RNGR's WACC of 7.8% against industry peers to gauge its relative financing costs. A beta of 0.52 reflects the stock's volatility relative to the broader market.

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VALUATION

RNGR WACC: 7.85% for Ranger Energy Services, Inc.

Current inputs imply a 8.10% cost of equity and a 5.60% 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

Ranger Energy Services, Inc. Common Stock (RNGR) WACC Results
Weighted Average Cost of Capital
7.85%
Cost of Equity
8.10%
Risk-Free Rate5.22%
Beta0.52
Market Risk Premium4.23%
Cost of Debt
4.42%
Pre-Tax Cost of Debt5.60%
Tax Rate21.00%
Tax Shield1.18%
Capital Structure
Equity: 93.17%($365.60M)
Debt: 6.83%($26.80M)
Equity Component
7.54%
93.17% × 8.10%
Debt Component
0.30%
6.83% × 4.42%

Ranger Energy Services, Inc. (RNGR) WACC in context

Ranger Energy Services, Inc. (RNGR) currently screens with an estimated WACC of 7.85%. That blends a 8.10% cost of equity, a 5.60% pre-tax cost of debt, and a 93.17% 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 RNGR WACC implies

A 7.85% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates RNGR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.52 and equity accounts for 93.17% 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.