Skip to content

PennyMac Mortgage Investment Trust (PMT) — WACC Analysis

WACC Breakdown

PennyMac Mortgage Investment Trust (PMT) has a weighted average cost of capital (WACC) of 20.0%. The cost of equity is 8.6%, derived from a beta of 0.80 and a risk-free rate of 5.0%. The after-tax cost of debt is 34.2%. The capital structure is 24.1% equity and 75.9% debt.

Interpretation

A WACC of 20.0% indicates that the market perceives PennyMac Mortgage Investment Trust as higher-risk, requiring a greater return to compensate investors.

Investors can compare PMT's WACC of 20.0% against industry peers to gauge its relative financing costs. A beta of 0.80 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

PMT WACC: 20.00% for PennyMac Mortgage Investment Trust

Current inputs imply a 8.63% cost of equity and a 43.29% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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 Mortgage Investment Trust Common Stock (PMT) WACC Results
Weighted Average Cost of Capital
20.00%
Cost of Equity
8.63%
Risk-Free Rate4.96%
Beta0.80
Market Risk Premium4.23%
Cost of Debt
34.20%
Pre-Tax Cost of Debt43.29%
Tax Rate21.00%
Tax Shield9.09%
Capital Structure
Equity: 24.13%($789.18M)
Debt: 75.87%($2481.13M)
Equity Component
2.08%
24.13% × 8.63%
Debt Component
25.95%
75.87% × 34.20%

PennyMac Mortgage Investment Trust (PMT) WACC in context

PennyMac Mortgage Investment Trust (PMT) currently screens with an estimated WACC of 20.00%. That blends a 8.63% cost of equity, a 43.29% pre-tax cost of debt, and a 24.13% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What PMT WACC implies

A 20.00% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates PMT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.80 and equity accounts for 24.13% 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.

PMT Company Analysis

Review profitability, valuation multiples, filings, and business context.

PMT DCF Valuation

Carry the same discount-rate assumptions into a full DCF model.

Compare against peers

Put the valuation and cost of capital into a peer context.

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.