Question 1

What is Rithm Capital Corp.'s WACC?

Accepted Answer

Rithm Capital Corp. (RITM) has a Weighted Average Cost of Capital (WACC) of 4.00%. This is calculated using a Cost of Equity of 8.37% (via CAPM with a beta of 0.88) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 12.74% in the capital structure.

Question 2

Is Rithm Capital Corp.'s WACC high or low?

Accepted Answer

Rithm Capital Corp.'s WACC of 4.00% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Rithm Capital Corp.'s WACC calculated?

Accepted Answer

Rithm Capital Corp.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.37% is derived from the CAPM model using a beta of 0.88. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 12.74% equity and 87.26% debt.

Rithm Capital Corp. (RITM) — WACC 分析

WACC 构成

解读

Rithm Capital Corp.（RITM）WACC：4.00%

WACC计算器

Rithm Capital Corp.（RITM） WACC 解读

RITM 公司分析

RITM DCF 估值

继续做同行对比