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CBL & Associates Properties, Inc. (CBL) — WACC Analysis

WACC Breakdown

CBL & Associates Properties, Inc. (CBL) has a weighted average cost of capital (WACC) of 4.9%. The cost of equity is 8.9%, derived from a beta of 0.79 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.4%. The capital structure is 27.4% equity and 72.6% debt.

Interpretation

A WACC of 4.9% suggests that the market views CBL & Associates Properties, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare CBL's WACC of 4.9% against industry peers to gauge its relative financing costs. A beta of 0.79 reflects the stock's volatility relative to the broader market.

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VALUATION

CBL WACC: 4.87% for CBL & Associates Properties, Inc.

Current inputs imply a 8.86% cost of equity and a 4.26% 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

CBL & Associates Properties, Inc. Common Stock (CBL) WACC Results
Weighted Average Cost of Capital
4.87%
Cost of Equity
8.86%
Risk-Free Rate5.22%
Beta0.79
Market Risk Premium4.23%
Cost of Debt
3.37%
Pre-Tax Cost of Debt4.26%
Tax Rate21.00%
Tax Shield0.90%
Capital Structure
Equity: 27.37%($1506.29M)
Debt: 72.63%($3996.45M)
Equity Component
2.42%
27.37% × 8.86%
Debt Component
2.45%
72.63% × 3.37%

CBL & Associates Properties, Inc. (CBL) WACC in context

CBL & Associates Properties, Inc. (CBL) currently screens with an estimated WACC of 4.87%. That blends a 8.86% cost of equity, a 4.26% pre-tax cost of debt, and a 27.37% 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 CBL WACC implies

A 4.87% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CBL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.79 and equity accounts for 27.37% 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.