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AMC ENTERTAINMENT HOLDINGS, INC. (AMC) — WACC Analysis

WACC Breakdown

AMC ENTERTAINMENT HOLDINGS, INC. (AMC) has a weighted average cost of capital (WACC) of 13.1%. The cost of equity is 10.7%, derived from a beta of 1.63 and a risk-free rate of 4.7%. The after-tax cost of debt is 14.5%. The capital structure is 38.0% equity and 62.0% debt.

Interpretation

A WACC of 13.1% indicates that the market perceives AMC ENTERTAINMENT HOLDINGS, INC. as higher-risk, requiring a greater return to compensate investors.

Investors can compare AMC's WACC of 13.1% against industry peers to gauge its relative financing costs. A beta of 1.63 reflects the stock's volatility relative to the broader market.

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VALUATION

AMC WACC: 13.05% for AMC ENTERTAINMENT HOLDINGS, INC.

Current inputs imply a 10.74% cost of equity and a 14.47% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

AMC ENTERTAINMENT HOLDINGS, INC. Common Stock (AMC) WACC Results
Weighted Average Cost of Capital
13.05%
Cost of Equity
10.74%
Risk-Free Rate4.73%
Beta1.63
Market Risk Premium4.23%
Cost of Debt
14.47%
Pre-Tax Cost of Debt14.47%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 37.96%($2356.48M)
Debt: 62.04%($3851.60M)
Equity Component
4.08%
37.96% × 10.74%
Debt Component
8.98%
62.04% × 14.47%

AMC ENTERTAINMENT HOLDINGS, INC. (AMC) WACC in context

AMC ENTERTAINMENT HOLDINGS, INC. (AMC) currently screens with an estimated WACC of 13.05%. That blends a 10.74% cost of equity, a 14.47% pre-tax cost of debt, and a 37.96% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What AMC WACC implies

A 13.05% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates AMC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.63 and equity accounts for 37.96% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.