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The Pennant Group, Inc. Common Stock (PNTG) — WACC Analysis

WACC Breakdown

The Pennant Group, Inc. Common Stock (PNTG) has a weighted average cost of capital (WACC) of 8.7%. The cost of equity is 9.4%, derived from a beta of 0.97 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.3%. The capital structure is 87.8% equity and 12.2% debt.

Interpretation

A WACC of 8.7% is moderate, reflecting the market's balanced risk assessment of The Pennant Group, Inc. Common Stock.

Investors can compare PNTG's WACC of 8.7% against industry peers to gauge its relative financing costs. A beta of 0.97 reflects the stock's volatility relative to the broader market.

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VALUATION

PNTG WACC: 8.74% for The Pennant Group, Inc. Common Stock

Current inputs imply a 9.37% cost of equity and a 5.41% 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

The Pennant Group, Inc. Common Stock Common Stock (PNTG) WACC Results
Weighted Average Cost of Capital
8.74%
Cost of Equity
9.37%
Risk-Free Rate5.22%
Beta0.97
Market Risk Premium4.23%
Cost of Debt
4.27%
Pre-Tax Cost of Debt5.41%
Tax Rate21.00%
Tax Shield1.14%
Capital Structure
Equity: 87.75%($1415.33M)
Debt: 12.25%($197.50M)
Equity Component
8.22%
87.75% × 9.37%
Debt Component
0.52%
12.25% × 4.27%

The Pennant Group, Inc. Common Stock (PNTG) WACC in context

The Pennant Group, Inc. Common Stock (PNTG) currently screens with an estimated WACC of 8.74%. That blends a 9.37% cost of equity, a 5.41% pre-tax cost of debt, and a 87.75% 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 PNTG WACC implies

A 8.74% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PNTG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.97 and equity accounts for 87.75% 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.