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Peloton Interactive, Inc. Class A Common Stock (PTON) — WACC Analysis

WACC Breakdown

Peloton Interactive, Inc. Class A Common Stock (PTON) has a weighted average cost of capital (WACC) of 10.5%. The cost of equity is 12.4%, derived from a beta of 2.06 and a risk-free rate of 5.2%. The after-tax cost of debt is 7.3%. The capital structure is 62.6% equity and 37.4% debt.

Interpretation

A WACC of 10.5% is moderate, reflecting the market's balanced risk assessment of Peloton Interactive, Inc. Class A Common Stock.

Investors can compare PTON's WACC of 10.5% against industry peers to gauge its relative financing costs. A beta of 2.06 reflects the stock's volatility relative to the broader market.

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VALUATION

PTON WACC: 10.52% for Peloton Interactive, Inc. Class A Common Stock

Current inputs imply a 12.44% cost of equity and a 9.24% 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

Peloton Interactive, Inc. Class A Common Stock Common Stock (PTON) WACC Results
Weighted Average Cost of Capital
10.52%
Cost of Equity
12.44%
Risk-Free Rate5.22%
Beta2.06
Market Risk Premium4.23%
Cost of Debt
7.30%
Pre-Tax Cost of Debt9.24%
Tax Rate21.00%
Tax Shield1.94%
Capital Structure
Equity: 62.64%($2247.02M)
Debt: 37.36%($1340.00M)
Equity Component
7.79%
62.64% × 12.44%
Debt Component
2.73%
37.36% × 7.30%

Peloton Interactive, Inc. Class A Common Stock (PTON) WACC in context

Peloton Interactive, Inc. Class A Common Stock (PTON) currently screens with an estimated WACC of 10.52%. That blends a 12.44% cost of equity, a 9.24% pre-tax cost of debt, and a 62.64% 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 PTON WACC implies

A 10.52% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PTON

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.06 and equity accounts for 62.64% 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.