B. Riley Financial Inc (RILY) WACC Analysis

As of June 3, 2025, B. Riley Financial Inc (RILY) carries a Weighted Average Cost of Capital (WACC) of 6.8%. WACC reflects the blended rate B. Riley Financial Inc must pay to both equity and debt holders.

Within that, the cost of equity is 87.2%, the cost of debt is 6.3%, and the effective tax rate is 26.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 18.12 – 25.68
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 56.16

What It Means for Investors

With a selected WACC of 6.8%, B. Riley Financial Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.