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Elme Communities (ELME) — WACC Analysis

WACC Breakdown

Elme Communities (ELME) has a weighted average cost of capital (WACC) of 10.9%. The cost of equity is 7.8%, derived from a beta of 0.59 and a risk-free rate of 4.7%. The after-tax cost of debt is 12.7%. The capital structure is 36.3% equity and 63.7% debt.

Interpretation

A WACC of 10.9% is moderate, reflecting the market's balanced risk assessment of Elme Communities.

Investors can compare ELME's WACC of 10.9% against industry peers to gauge its relative financing costs. A beta of 0.59 reflects the stock's volatility relative to the broader market.

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VALUATION

ELME WACC: 10.92% for Elme Communities

Current inputs imply a 7.75% cost of equity and a 12.73% 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

Elme Communities Common Stock (ELME) WACC Results
Weighted Average Cost of Capital
10.92%
Cost of Equity
7.75%
Risk-Free Rate4.68%
Beta0.59
Market Risk Premium4.23%
Cost of Debt
12.73%
Pre-Tax Cost of Debt12.73%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 36.30%($143.06M)
Debt: 63.70%($251.04M)
Equity Component
2.81%
36.30% × 7.75%
Debt Component
8.11%
63.70% × 12.73%

Elme Communities (ELME) WACC in context

Elme Communities (ELME) currently screens with an estimated WACC of 10.92%. That blends a 7.75% cost of equity, a 12.73% pre-tax cost of debt, and a 36.30% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What ELME WACC implies

A 10.92% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates ELME

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.59 and equity accounts for 36.30% 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.