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Angel Oak Mortgage REIT, Inc. (AOMR) — WACC Analysis

WACC Breakdown

Angel Oak Mortgage REIT, Inc. (AOMR) has a weighted average cost of capital (WACC) of 4.0%. The cost of equity is 8.8%, derived from a beta of 0.76 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.6%. The capital structure is 6.3% equity and 93.7% debt.

Interpretation

A WACC of 4.0% suggests that the market views Angel Oak Mortgage REIT, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare AOMR's WACC of 4.0% against industry peers to gauge its relative financing costs. A beta of 0.76 reflects the stock's volatility relative to the broader market.

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VALUATION

AOMR WACC: 4.00% for Angel Oak Mortgage REIT, Inc.

Current inputs imply a 8.77% cost of equity and a 4.57% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

Angel Oak Mortgage REIT, Inc. Common Stock (AOMR) WACC Results
Weighted Average Cost of Capital
4.00%
Cost of Equity
8.77%
Risk-Free Rate5.22%
Beta0.76
Market Risk Premium4.23%
Cost of Debt
3.61%
Pre-Tax Cost of Debt4.57%
Tax Rate21.00%
Tax Shield0.96%
Capital Structure
Equity: 6.27%($166.68M)
Debt: 93.73%($2493.38M)
Equity Component
0.55%
6.27% × 8.77%
Debt Component
3.38%
93.73% × 3.61%

Angel Oak Mortgage REIT, Inc. (AOMR) WACC in context

Angel Oak Mortgage REIT, Inc. (AOMR) currently screens with an estimated WACC of 4.00%. That blends a 8.77% cost of equity, a 4.57% pre-tax cost of debt, and a 6.27% 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 AOMR WACC implies

A 4.00% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates AOMR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.76 and equity accounts for 6.27% 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.