Question 1

What is Live Nation Entertainment Inc.'s WACC?

Accepted Answer

Live Nation Entertainment Inc. (LYV) has a Weighted Average Cost of Capital (WACC) of 8.11%. This is calculated using a Cost of Equity of 8.80% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.86%, with an equity weight of 86.18% in the capital structure.

Question 2

Is Live Nation Entertainment Inc.'s WACC high or low?

Accepted Answer

Live Nation Entertainment Inc.'s WACC of 8.11% 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 Live Nation Entertainment Inc.'s WACC calculated?

Accepted Answer

Live Nation Entertainment Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.80% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.86%. The capital structure is 86.18% equity and 13.82% debt.

Live Nation Entertainment Inc. (LYV) — WACC 分析

WACC 构成

解读

Live Nation Entertainment Inc.（LYV）WACC：8.11%

WACC计算器

Live Nation Entertainment Inc.（LYV） WACC 解读

LYV 公司分析

LYV DCF 估值

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