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Agree Realty Corporation (ADC) — WACC Analysis

WACC Breakdown

Agree Realty Corporation (ADC) has a weighted average cost of capital (WACC) of 6.0%. The cost of equity is 7.2%, derived from a beta of 0.27 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.2%. The capital structure is 70.1% equity and 29.9% debt.

Interpretation

A WACC of 6.0% suggests that the market views Agree Realty Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare ADC's WACC of 6.0% against industry peers to gauge its relative financing costs. A beta of 0.27 reflects the stock's volatility relative to the broader market.

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VALUATION

ADC WACC: 5.98% for Agree Realty Corporation

Current inputs imply a 7.15% cost of equity and a 4.09% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Agree Realty Corporation Common Stock (ADC) WACC Results
Weighted Average Cost of Capital
5.98%
Cost of Equity
7.15%
Risk-Free Rate4.98%
Beta0.27
Market Risk Premium4.23%
Cost of Debt
3.23%
Pre-Tax Cost of Debt4.09%
Tax Rate21.00%
Tax Shield0.86%
Capital Structure
Equity: 70.10%($8796.13M)
Debt: 29.90%($3752.25M)
Equity Component
5.01%
70.10% × 7.15%
Debt Component
0.97%
29.90% × 3.23%

Agree Realty Corporation (ADC) WACC in context

Agree Realty Corporation (ADC) currently screens with an estimated WACC of 5.98%. That blends a 7.15% cost of equity, a 4.09% pre-tax cost of debt, and a 70.10% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What ADC WACC implies

A 5.98% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates ADC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.27 and equity accounts for 70.10% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.