Realogy Holdings Corp (RLGY) WACC Analysis

As of May 27, 2025, Realogy Holdings Corp (RLGY) carries a Weighted Average Cost of Capital (WACC) of 7.4%. WACC reflects the blended rate Realogy Holdings Corp must pay to both equity and debt holders.

Within that, the cost of equity is 12.2%, the cost of debt is 5.5%, and the effective tax rate is 22.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 2.14 – 2.28
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.17

What It Means for Investors

With a selected WACC of 7.4%, Realogy Holdings Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.