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Dave & Buster's Entertainment, Inc. (PLAY) — WACC Analysis

WACC Breakdown

Dave & Buster's Entertainment, Inc. (PLAY) has a weighted average cost of capital (WACC) of 10.0%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 10.2%. The capital structure is 15.8% equity and 84.2% debt.

Interpretation

A WACC of 10.0% is moderate, reflecting the market's balanced risk assessment of Dave & Buster's Entertainment, Inc..

Investors can compare PLAY's WACC of 10.0% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

PLAY WACC: 10.02% for Dave & Buster's Entertainment, Inc.

Current inputs imply a 9.19% cost of equity and a 10.18% 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

Dave & Buster's Entertainment, Inc. Common Stock (PLAY) WACC Results
Weighted Average Cost of Capital
10.02%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
10.18%
Pre-Tax Cost of Debt10.18%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 15.81%($283.18M)
Debt: 84.19%($1507.50M)
Equity Component
1.45%
15.81% × 9.19%
Debt Component
8.57%
84.19% × 10.18%

Dave & Buster's Entertainment, Inc. (PLAY) WACC in context

Dave & Buster's Entertainment, Inc. (PLAY) currently screens with an estimated WACC of 10.02%. That blends a 9.19% cost of equity, a 10.18% pre-tax cost of debt, and a 15.81% 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 PLAY WACC implies

A 10.02% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PLAY

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 15.81% 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.