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TKO Group Holdings, Inc. (TKO) — WACC Analysis

WACC Breakdown

TKO Group Holdings, Inc. (TKO) has a weighted average cost of capital (WACC) of 7.3%. The cost of equity is 8.4%, derived from a beta of 0.69 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.1%. The capital structure is 75.2% equity and 24.8% debt.

Interpretation

A WACC of 7.3% suggests that the market views TKO Group Holdings, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare TKO's WACC of 7.3% against industry peers to gauge its relative financing costs. A beta of 0.69 reflects the stock's volatility relative to the broader market.

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VALUATION

TKO WACC: 7.31% for TKO Group Holdings, Inc.

Current inputs imply a 8.36% cost of equity and a 5.20% 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

TKO Group Holdings, Inc. Common Stock (TKO) WACC Results
Weighted Average Cost of Capital
7.31%
Cost of Equity
8.36%
Risk-Free Rate5.00%
Beta0.69
Market Risk Premium4.23%
Cost of Debt
4.11%
Pre-Tax Cost of Debt5.20%
Tax Rate21.00%
Tax Shield1.09%
Capital Structure
Equity: 75.24%($14.07B)
Debt: 24.76%($4629.23M)
Equity Component
6.29%
75.24% × 8.36%
Debt Component
1.02%
24.76% × 4.11%

TKO Group Holdings, Inc. (TKO) WACC in context

TKO Group Holdings, Inc. (TKO) currently screens with an estimated WACC of 7.31%. That blends a 8.36% cost of equity, a 5.20% pre-tax cost of debt, and a 75.24% 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 TKO WACC implies

A 7.31% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates TKO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.69 and equity accounts for 75.24% 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.

TKO WACC: 7.31% — TKO Group Holdings, Inc. Cost of Capital (September 2026) | DeepViews