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Portillo's Inc. Class A Common Stock (PTLO) — WACC Analysis

WACC Breakdown

Portillo's Inc. Class A Common Stock (PTLO) has a weighted average cost of capital (WACC) of 7.6%. The cost of equity is 9.9%, derived from a beta of 1.16 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.4%. The capital structure is 48.2% equity and 51.8% debt.

Interpretation

A WACC of 7.6% suggests that the market views Portillo's Inc. Class A Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare PTLO's WACC of 7.6% against industry peers to gauge its relative financing costs. A beta of 1.16 reflects the stock's volatility relative to the broader market.

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VALUATION

PTLO WACC: 7.56% for Portillo's Inc. Class A Common Stock

Current inputs imply a 9.90% cost of equity and a 6.81% 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

Portillo's Inc. Class A Common Stock Common Stock (PTLO) WACC Results
Weighted Average Cost of Capital
7.56%
Cost of Equity
9.90%
Risk-Free Rate5.22%
Beta1.16
Market Risk Premium4.23%
Cost of Debt
5.38%
Pre-Tax Cost of Debt6.81%
Tax Rate21.00%
Tax Shield1.43%
Capital Structure
Equity: 48.24%($309.65M)
Debt: 51.76%($332.19M)
Equity Component
4.78%
48.24% × 9.90%
Debt Component
2.79%
51.76% × 5.38%

Portillo's Inc. Class A Common Stock (PTLO) WACC in context

Portillo's Inc. Class A Common Stock (PTLO) currently screens with an estimated WACC of 7.56%. That blends a 9.90% cost of equity, a 6.81% pre-tax cost of debt, and a 48.24% 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 PTLO WACC implies

A 7.56% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates PTLO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.16 and equity accounts for 48.24% 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.