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Douglas Emmett, Inc. (DEI) — WACC Analysis

WACC Breakdown

Douglas Emmett, Inc. (DEI) has a weighted average cost of capital (WACC) of 5.8%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.8%. The capital structure is 23.6% equity and 76.4% debt.

Interpretation

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

Investors can compare DEI's WACC of 5.8% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

DEI WACC: 5.83% for Douglas Emmett, Inc.

Current inputs imply a 9.19% cost of equity and a 4.79% 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

Douglas Emmett, Inc. Common Stock (DEI) WACC Results
Weighted Average Cost of Capital
5.83%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
4.79%
Pre-Tax Cost of Debt4.79%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 23.63%($1770.32M)
Debt: 76.37%($5722.56M)
Equity Component
2.17%
23.63% × 9.19%
Debt Component
3.66%
76.37% × 4.79%

Douglas Emmett, Inc. (DEI) WACC in context

Douglas Emmett, Inc. (DEI) currently screens with an estimated WACC of 5.83%. That blends a 9.19% cost of equity, a 4.79% pre-tax cost of debt, and a 23.63% 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 DEI WACC implies

A 5.83% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates DEI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 23.63% 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.