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PennyMac Financial Services, Inc. Common Stock (PFSI) — WACC Analysis

WACC Breakdown

PennyMac Financial Services, Inc. Common Stock (PFSI) has a weighted average cost of capital (WACC) of 11.5%. The cost of equity is 9.1%, derived from a beta of 0.96 and a risk-free rate of 5.0%. The after-tax cost of debt is 12.9%. The capital structure is 36.1% equity and 63.9% debt.

Interpretation

A WACC of 11.5% is moderate, reflecting the market's balanced risk assessment of PennyMac Financial Services, Inc. Common Stock.

Investors can compare PFSI's WACC of 11.5% against industry peers to gauge its relative financing costs. A beta of 0.96 reflects the stock's volatility relative to the broader market.

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VALUATION

PFSI WACC: 11.52% for PennyMac Financial Services, Inc. Common Stock

Current inputs imply a 9.08% cost of equity and a 16.32% 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

PennyMac Financial Services, Inc. Common Stock Common Stock (PFSI) WACC Results
Weighted Average Cost of Capital
11.52%
Cost of Equity
9.08%
Risk-Free Rate4.96%
Beta0.96
Market Risk Premium4.23%
Cost of Debt
12.90%
Pre-Tax Cost of Debt16.32%
Tax Rate21.00%
Tax Shield3.43%
Capital Structure
Equity: 36.15%($3583.10M)
Debt: 63.85%($6330.00M)
Equity Component
3.28%
36.15% × 9.08%
Debt Component
8.23%
63.85% × 12.90%

PennyMac Financial Services, Inc. Common Stock (PFSI) WACC in context

PennyMac Financial Services, Inc. Common Stock (PFSI) currently screens with an estimated WACC of 11.52%. That blends a 9.08% cost of equity, a 16.32% pre-tax cost of debt, and a 36.15% 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 PFSI WACC implies

A 11.52% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PFSI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.96 and equity accounts for 36.15% 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.