Eros STX Global Corp (ESGC) WACC Analysis

As of May 24, 2025, Eros STX Global Corp (ESGC) carries a Weighted Average Cost of Capital (WACC) of 5.5%. WACC reflects the blended rate Eros STX Global Corp must pay to both equity and debt holders.

Within that, the cost of equity is 10.1%, the cost of debt is 6.0%, and the effective tax rate is 31.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 1.63 – 2.19
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 4.35

What It Means for Investors

With a selected WACC of 5.5%, Eros STX Global Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.