MSGN
MSG Networks Inc
Price:  
14.17 
USD
Volume:  
375,450.00
United States | Media
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MSGN WACC - Weighted Average Cost of Capital

The WACC of MSG Networks Inc (MSGN) is 5.7%.

The Cost of Equity of MSG Networks Inc (MSGN) is 9.30%.
The Cost of Debt of MSG Networks Inc (MSGN) is 4.25%.

Range Selected
Cost of equity 7.70% - 10.90% 9.30%
Tax rate 29.90% - 31.70% 30.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.9% - 6.4% 5.7%
WACC

MSGN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.07 1.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.90%
Tax rate 29.90% 31.70%
Debt/Equity ratio 1.34 1.34
Cost of debt 4.00% 4.50%
After-tax WACC 4.9% 6.4%
Selected WACC 5.7%

MSGN's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for MSGN:

cost_of_equity (9.30%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.07) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.