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Madison Square Garden Sports Corp. (MSGS) — WACC Analysis

WACC Breakdown

Madison Square Garden Sports Corp. (MSGS) has a weighted average cost of capital (WACC) of 8.0%. The cost of equity is 8.0%, derived from a beta of 0.59 and a risk-free rate of 5.0%. The after-tax cost of debt is 6.4%. The capital structure is 97.4% equity and 2.6% debt.

Interpretation

A WACC of 8.0% suggests that the market views Madison Square Garden Sports Corp. as relatively low-risk, with a lower cost of financing.

Investors can compare MSGS's WACC of 8.0% against industry peers to gauge its relative financing costs. A beta of 0.59 reflects the stock's volatility relative to the broader market.

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VALUATION

MSGS WACC: 7.99% for Madison Square Garden Sports Corp.

Current inputs imply a 8.03% cost of equity and a 8.16% 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 Sports Corp. Common Stock (MSGS) WACC Results
Weighted Average Cost of Capital
7.99%
Cost of Equity
8.03%
Risk-Free Rate4.96%
Beta0.59
Market Risk Premium4.23%
Cost of Debt
6.44%
Pre-Tax Cost of Debt8.16%
Tax Rate21.00%
Tax Shield1.71%
Capital Structure
Equity: 97.36%($9542.88M)
Debt: 2.64%($258.50M)
Equity Component
7.82%
97.36% × 8.03%
Debt Component
0.17%
2.64% × 6.44%

Madison Square Garden Sports Corp. (MSGS) WACC in context

Madison Square Garden Sports Corp. (MSGS) currently screens with an estimated WACC of 7.99%. That blends a 8.03% cost of equity, a 8.16% pre-tax cost of debt, and a 97.36% 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 MSGS WACC implies

A 7.99% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates MSGS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.59 and equity accounts for 97.36% 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.