What is Madison Square Garden Entertainment WACC %?
Madison Square Garden EntertainmentMSGE +0.68%74 WACC % is 6.71% as of Jun. 24, 2026, which is 19% below its 10-year median of 8.27. GuruFocus rates MSGE with a GF Score™ of 74/100 and a GF Value™ of $43.10 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,050 Media - Diversified companies, Madison Square Garden Entertainment ranks better than 55.33% on this metric.
As of today (2026-06-24), Madison Square Garden Entertainment's weighted average cost of capital is 6.71%%. Madison Square Garden Entertainment's ROIC % is 5.38% (calculated using TTM income statement data).
Madison Square Garden Entertainment earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Madison Square Garden Entertainment (NYSE:MSGE) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Madison Square Garden Entertainment's weighted average cost of capital is 6.71%%. Madison Square Garden Entertainment's ROIC % is 5.38% (calculated using TTM income statement data).
Madison Square Garden Entertainment earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Madison Square Garden Entertainment WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Entertainment subindustry, Madison Square Garden Entertainment's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Madison Square Garden Entertainment WACC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Madison Square Garden Entertainment's WACC % distribution charts can be found below:
* The bar in red indicates where Madison Square Garden Entertainment's WACC % falls into.
Madison Square Garden Entertainment WACC % Calculation
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Madison Square Garden Entertainment's market capitalization (E) is $3640.613 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Madison Square Garden Entertainment's latest one-year quarterly average Book Value of Debt (D) is $1200.6674 Mil.
a) weight of equity = E / (E + D) = 3640.613 / (3640.613 + 1200.6674) = 0.752
b) weight of debt = D / (E + D) = 1200.6674 / (3640.613 + 1200.6674) = 0.248
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.406%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Madison Square Garden Entertainment's beta is 0.6316.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.406% + 0.6316 * 6% = 8.1956%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Madison Square Garden Entertainment's interest expense (positive number) was $42.58 Mil. Its total Book Value of Debt (D) is $1200.6674 Mil.
Cost of Debt = 42.58 / 1200.6674 = 3.5464%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 30.173 / 79.167 = 38.11%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Madison Square Garden Entertainment (MSGE) has a WACC % of 6.71% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Madison Square Garden Entertainment and its competitors. This is 19% below median its historical median of 8.27. Over the past decade, Madison Square Garden Entertainment's WACC % has ranged from 6.77 to 8.72. According to the industry distribution chart, Madison Square Garden Entertainment ranks #469 out of 1050 companies in the Media - Diversified industry, placing it in the top 44.7%.
Is Madison Square Garden Entertainment's WACC % too high?
Madison Square Garden Entertainment's current WACC % of 6.71% is 19% below median its 10-year median of 8.27. Over the past 10 years, this metric has ranged from a low of 6.77 to a high of 8.72. The Media - Diversified industry median WACC % is 7.46. Madison Square Garden Entertainment's value of 6.71% is 10% below this industry median. Based on the distribution chart, Madison Square Garden Entertainment ranks #469 out of 1050 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Madison Square Garden Entertainment has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Madison Square Garden Entertainment's WACC % compare to CNK and BATRA?
According to the Media - Diversified industry distribution chart, Madison Square Garden Entertainment ranks #469 out of 1050 companies for WACC %. This puts Madison Square Garden Entertainment in the upper half of its industry. The industry median WACC % is 7.46. Madison Square Garden Entertainment's value of 6.71% is 10% below this benchmark. Historically, Madison Square Garden Entertainment's own WACC % has ranged from 6.77 to 8.72 over the past decade. While the company's 10-year median is 8.27 vs. the industry median of 7.46, Madison Square Garden Entertainment has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Media - Diversified company?
The median WACC % among Media - Diversified companies is 7.46, based on 1,050 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Madison Square Garden Entertainment's current WACC % of 6.71% is 10% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Madison Square Garden Entertainment and its competitors. For the Media - Diversified industry, the median WACC % is 7.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Madison Square Garden Entertainment's current WACC % is 6.71%, which is 19% below median its own 10-year median of 8.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Madison Square Garden Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Madison Square Garden Entertainment (MSGE) is currently considered Significantly Overvalued. The stock's GF Value™ is $43.10, compared to a current price of $76.96 — trading 78.6% above its estimated fair value. The current WACC % is 6.71%, which is 19% below median its 10-year median of 8.27 and 10% below the Media - Diversified industry median of 7.46. Madison Square Garden Entertainment's overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Madison Square Garden Entertainment (MSGE), the current WACC % is 6.71% as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Madison Square Garden Entertainment (MSGE) Overvalued in 2026?
Based on GuruFocus' analysis, Madison Square Garden Entertainment stock appears to be overvalued.
The current stock price of $76.96 is trading 78.6% above its estimated GF Value™ of $43.10.
GuruFocus considers Madison Square Garden Entertainment to be Significantly Overvalued.
Key valuation signals for MSGE:
WACC %: 6.71% (19% below median its 10-year median of 8.27)
GF Value™: $43.10 vs. price of $76.96 (78.6% above fair value)
Industry Position: 10% below the Media - Diversified median (#469 of 1050)
No single metric tells the full story. See the MSGE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Madison Square Garden Entertainment Business Description
Madison Square Garden Entertainment Corp provides live entertainment, delivering unforgettable experiences while forging deep connections with diverse and passionate audiences. The company's portfolio includes a collection of world-renowned venues - New York's Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre - that showcase a broad array of sporting events, concerts, family shows, and special events for millions of guests annually. In addition, the company features the original production, the Christmas Spectacular Starring the Radio City Rockettes, which has been a holiday tradition for 89 years.
74GF Score
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