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 14.22%. This is calculated using a Cost of Equity of 10.35% (via CAPM with a beta of 1.61) and a pre-tax Cost of Debt of 17.41%, with an equity weight of 45.25% 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 14.22% 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 10.35% is derived from the CAPM model using a beta of 1.61. The pre-tax Cost of Debt (Rd) is 17.41%. The capital structure is 45.25% equity and 54.75% debt.

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

WACC 构成

解读

PENN Entertainment, Inc. Common Stock（PENN）WACC：14.22%

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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