CorePoint Lodging Inc (CPLG) WACC Analysis

As of May 25, 2025, CorePoint Lodging Inc (CPLG) carries a Weighted Average Cost of Capital (WACC) of 8.0%. WACC reflects the blended rate CorePoint Lodging Inc must pay to both equity and debt holders.

Within that, the cost of equity is 9.1%, the cost of debt is 5.4%, and the effective tax rate is 7.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 1.41 – 1.45
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.87

What It Means for Investors

With a selected WACC of 8.0%, CorePoint Lodging Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.