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Red Rock Resorts, Inc. Class A Common Stock (RRR) — WACC Analysis

WACC Breakdown

Red Rock Resorts, Inc. Class A Common Stock (RRR) has a weighted average cost of capital (WACC) of 6.9%. The cost of equity is 9.9%, derived from a beta of 1.15 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.4%. The capital structure is 45.3% equity and 54.7% debt.

Interpretation

A WACC of 6.9% suggests that the market views Red Rock Resorts, Inc. Class A Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare RRR's WACC of 6.9% against industry peers to gauge its relative financing costs. A beta of 1.15 reflects the stock's volatility relative to the broader market.

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VALUATION

RRR WACC: 6.88% for Red Rock Resorts, Inc. Class A Common Stock

Current inputs imply a 9.87% cost of equity and a 5.57% 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

Red Rock Resorts, Inc. Class A Common Stock Common Stock (RRR) WACC Results
Weighted Average Cost of Capital
6.88%
Cost of Equity
9.87%
Risk-Free Rate5.22%
Beta1.15
Market Risk Premium4.23%
Cost of Debt
4.40%
Pre-Tax Cost of Debt5.57%
Tax Rate21.00%
Tax Shield1.17%
Capital Structure
Equity: 45.32%($2967.16M)
Debt: 54.68%($3579.86M)
Equity Component
4.47%
45.32% × 9.87%
Debt Component
2.40%
54.68% × 4.40%

Red Rock Resorts, Inc. Class A Common Stock (RRR) WACC in context

Red Rock Resorts, Inc. Class A Common Stock (RRR) currently screens with an estimated WACC of 6.88%. That blends a 9.87% cost of equity, a 5.57% pre-tax cost of debt, and a 45.32% 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 RRR WACC implies

A 6.88% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates RRR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.15 and equity accounts for 45.32% 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.