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Centerspace (CSR) — WACC Analysis

WACC Breakdown

Centerspace (CSR) has a weighted average cost of capital (WACC) of 5.8%. The cost of equity is 8.0%, derived from a beta of 0.58 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.6%. The capital structure is 49.6% equity and 50.4% debt.

Interpretation

A WACC of 5.8% suggests that the market views Centerspace as relatively low-risk, with a lower cost of financing.

Investors can compare CSR's WACC of 5.8% against industry peers to gauge its relative financing costs. A beta of 0.58 reflects the stock's volatility relative to the broader market.

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VALUATION

CSR WACC: 5.81% for Centerspace

Current inputs imply a 8.02% cost of equity and a 4.61% 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

Centerspace Common Stock (CSR) WACC Results
Weighted Average Cost of Capital
5.81%
Cost of Equity
8.02%
Risk-Free Rate4.97%
Beta0.58
Market Risk Premium4.23%
Cost of Debt
3.64%
Pre-Tax Cost of Debt4.61%
Tax Rate21.00%
Tax Shield0.97%
Capital Structure
Equity: 49.55%($972.08M)
Debt: 50.45%($989.58M)
Equity Component
3.97%
49.55% × 8.02%
Debt Component
1.84%
50.45% × 3.64%

Centerspace (CSR) WACC in context

Centerspace (CSR) currently screens with an estimated WACC of 5.81%. That blends a 8.02% cost of equity, a 4.61% pre-tax cost of debt, and a 49.55% 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 CSR WACC implies

A 5.81% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates CSR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.58 and equity accounts for 49.55% 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.