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Madison Square Garden Entertainment Corp. (MSGE) — WACC Analysis

WACC Breakdown

Madison Square Garden Entertainment Corp. (MSGE) has a weighted average cost of capital (WACC) of 8.8%. The cost of equity is 9.3%, derived from a beta of 0.95 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.5%. The capital structure is 86.9% equity and 13.1% debt.

Interpretation

A WACC of 8.8% is moderate, reflecting the market's balanced risk assessment of Madison Square Garden Entertainment Corp..

Investors can compare MSGE's WACC of 8.8% against industry peers to gauge its relative financing costs. A beta of 0.95 reflects the stock's volatility relative to the broader market.

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VALUATION

MSGE WACC: 8.81% for Madison Square Garden Entertainment Corp.

Current inputs imply a 9.31% cost of equity and a 7.00% 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

Madison Square Garden Entertainment Corp. Common Stock (MSGE) WACC Results
Weighted Average Cost of Capital
8.81%
Cost of Equity
9.31%
Risk-Free Rate5.22%
Beta0.95
Market Risk Premium4.23%
Cost of Debt
5.53%
Pre-Tax Cost of Debt7.00%
Tax Rate21.00%
Tax Shield1.47%
Capital Structure
Equity: 86.86%($3774.01M)
Debt: 13.14%($570.80M)
Equity Component
8.09%
86.86% × 9.31%
Debt Component
0.73%
13.14% × 5.53%

Madison Square Garden Entertainment Corp. (MSGE) WACC in context

Madison Square Garden Entertainment Corp. (MSGE) currently screens with an estimated WACC of 8.81%. That blends a 9.31% cost of equity, a 7.00% pre-tax cost of debt, and a 86.86% 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 MSGE WACC implies

A 8.81% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MSGE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.95 and equity accounts for 86.86% 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.