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Peabody Energy Corporation (BTU) — WACC Analysis

WACC Breakdown

Peabody Energy Corporation (BTU) has a weighted average cost of capital (WACC) of 9.4%. The cost of equity is 9.0%, derived from a beta of 0.83 and a risk-free rate of 5.2%. The after-tax cost of debt is 13.2%. The capital structure is 90.0% equity and 10.0% debt.

Interpretation

A WACC of 9.4% is moderate, reflecting the market's balanced risk assessment of Peabody Energy Corporation.

Investors can compare BTU's WACC of 9.4% against industry peers to gauge its relative financing costs. A beta of 0.83 reflects the stock's volatility relative to the broader market.

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VALUATION

BTU WACC: 9.39% for Peabody Energy Corporation

Current inputs imply a 8.97% cost of equity and a 13.19% 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

Peabody Energy Corporation Common Stock (BTU) WACC Results
Weighted Average Cost of Capital
9.39%
Cost of Equity
8.97%
Risk-Free Rate5.22%
Beta0.83
Market Risk Premium4.23%
Cost of Debt
13.19%
Pre-Tax Cost of Debt13.19%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 90.04%($3063.35M)
Debt: 9.96%($339.00M)
Equity Component
8.08%
90.04% × 8.97%
Debt Component
1.31%
9.96% × 13.19%

Peabody Energy Corporation (BTU) WACC in context

Peabody Energy Corporation (BTU) currently screens with an estimated WACC of 9.39%. That blends a 8.97% cost of equity, a 13.19% pre-tax cost of debt, and a 90.04% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What BTU WACC implies

A 9.39% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates BTU

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.83 and equity accounts for 90.04% 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.