Question 1

What is Starz Entertainment Corp. Common Shares's WACC?

Accepted Answer

Starz Entertainment Corp. Common Shares (STRZ) has a Weighted Average Cost of Capital (WACC) of 7.09%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 6.52%, with an equity weight of 28.71% in the capital structure.

Question 2

Is Starz Entertainment Corp. Common Shares's WACC high or low?

Accepted Answer

Starz Entertainment Corp. Common Shares's WACC of 7.09% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. 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 Starz Entertainment Corp. Common Shares's WACC calculated?

Accepted Answer

Starz Entertainment Corp. Common Shares's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 6.52%. The capital structure is 28.71% equity and 71.29% debt.

Starz Entertainment Corp. Common Shares (STRZ) — WACC 分析

WACC 构成

解读

Starz Entertainment Corp. Common Shares（STRZ）WACC：7.09%

WACC计算器

Starz Entertainment Corp. Common Shares（STRZ） WACC 解读

STRZ 公司分析

STRZ DCF 估值

继续做同行对比