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Vail Resorts, Inc. (MTN) — WACC Analysis

WACC Breakdown

Vail Resorts, Inc. (MTN) has a weighted average cost of capital (WACC) of 7.7%. The cost of equity is 9.1%, derived from a beta of 0.88 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.2%. The capital structure is 62.8% equity and 37.2% debt.

Interpretation

A WACC of 7.7% suggests that the market views Vail Resorts, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare MTN's WACC of 7.7% against industry peers to gauge its relative financing costs. A beta of 0.88 reflects the stock's volatility relative to the broader market.

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VALUATION

MTN WACC: 7.67% for Vail Resorts, Inc.

Current inputs imply a 9.11% cost of equity and a 6.63% 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

Vail Resorts, Inc. Common Stock (MTN) WACC Results
Weighted Average Cost of Capital
7.67%
Cost of Equity
9.11%
Risk-Free Rate5.22%
Beta0.88
Market Risk Premium4.23%
Cost of Debt
5.24%
Pre-Tax Cost of Debt6.63%
Tax Rate21.00%
Tax Shield1.39%
Capital Structure
Equity: 62.80%($5238.39M)
Debt: 37.20%($3102.46M)
Equity Component
5.72%
62.80% × 9.11%
Debt Component
1.95%
37.20% × 5.24%

Vail Resorts, Inc. (MTN) WACC in context

Vail Resorts, Inc. (MTN) currently screens with an estimated WACC of 7.67%. That blends a 9.11% cost of equity, a 6.63% pre-tax cost of debt, and a 62.80% 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 MTN WACC implies

A 7.67% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates MTN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.88 and equity accounts for 62.80% 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.