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Churchill Downs Inc (CHDN) — WACC Analysis

WACC Breakdown

Churchill Downs Inc (CHDN) has a weighted average cost of capital (WACC) of 7.1%. The cost of equity is 9.0%, derived from a beta of 0.94 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.9%. The capital structure is 55.0% equity and 45.0% debt.

Interpretation

A WACC of 7.1% suggests that the market views Churchill Downs Inc as relatively low-risk, with a lower cost of financing.

Investors can compare CHDN's WACC of 7.1% against industry peers to gauge its relative financing costs. A beta of 0.94 reflects the stock's volatility relative to the broader market.

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VALUATION

CHDN WACC: 7.14% for Churchill Downs Inc

Current inputs imply a 9.02% cost of equity and a 6.14% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Churchill Downs Inc Common Stock (CHDN) WACC Results
Weighted Average Cost of Capital
7.14%
Cost of Equity
9.02%
Risk-Free Rate4.96%
Beta0.94
Market Risk Premium4.23%
Cost of Debt
4.85%
Pre-Tax Cost of Debt6.14%
Tax Rate21.00%
Tax Shield1.29%
Capital Structure
Equity: 54.97%($5826.94M)
Debt: 45.03%($4773.00M)
Equity Component
4.96%
54.97% × 9.02%
Debt Component
2.19%
45.03% × 4.85%

Churchill Downs Inc (CHDN) WACC in context

Churchill Downs Inc (CHDN) currently screens with an estimated WACC of 7.14%. That blends a 9.02% cost of equity, a 6.14% pre-tax cost of debt, and a 54.97% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What CHDN WACC implies

A 7.14% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CHDN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.94 and equity accounts for 54.97% 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.