Question 1

What is DraftKings Inc. Class A Common Stock's WACC?

Accepted Answer

DraftKings Inc. Class A Common Stock (DKNG) has a Weighted Average Cost of Capital (WACC) of 9.88%. This is calculated using a Cost of Equity of 10.80% (via CAPM with a beta of 1.77) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 90.06% in the capital structure.

Question 2

Is DraftKings Inc. Class A Common Stock's WACC high or low?

Accepted Answer

DraftKings Inc. Class A Common Stock's WACC of 9.88% falls within the typical 8-12% range for mid-cap growth companies. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is DraftKings Inc. Class A Common Stock's WACC calculated?

Accepted Answer

DraftKings Inc. Class A Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 10.80% is derived from the CAPM model using a beta of 1.77. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 90.06% equity and 9.94% debt.

DraftKings Inc. Class A Common Stock (DKNG) — WACC 分析

WACC 构成

解读

DraftKings Inc. Class A Common Stock（DKNG）WACC：9.88%

WACC计算器

DraftKings Inc. Class A Common Stock（DKNG） WACC 解读

DKNG 公司分析

DKNG DCF 估值

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