Question 1

What is PENN Entertainment, Inc. Common Stock's WACC?

Accepted Answer

PENN Entertainment, Inc. Common Stock (PENN) has a Weighted Average Cost of Capital (WACC) of 12.55%. This is calculated using a Cost of Equity of 10.32% (via CAPM with a beta of 1.57) and a pre-tax Cost of Debt of 14.76%, with an equity weight of 49.78% in the capital structure.

Question 2

Is PENN Entertainment, Inc. Common Stock's WACC high or low?

Accepted Answer

PENN Entertainment, Inc. Common Stock's WACC of 12.55% is above the typical range, indicating higher perceived risk and cost of capital. 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 PENN Entertainment, Inc. Common Stock's WACC calculated?

Accepted Answer

PENN Entertainment, Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 10.32% is derived from the CAPM model using a beta of 1.57. The pre-tax Cost of Debt (Rd) is 14.76%. The capital structure is 49.78% equity and 50.22% debt.

PENN Entertainment, Inc. Common Stock (PENN) — WACC 分析

WACC 构成

解读

PENN Entertainment, Inc. Common Stock（PENN）WACC：12.55%

WACC计算器

PENN Entertainment, Inc. Common Stock（PENN） WACC 解读

PENN 公司分析

PENN DCF 估值

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