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Elme Communities (ELME) — WACC Analysis

WACC Breakdown

Elme Communities (ELME) has a weighted average cost of capital (WACC) of 11.0%. 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 12.7%. The capital structure is 37.0% equity and 63.0% debt.

Interpretation

A WACC of 11.0% is moderate, reflecting the market's balanced risk assessment of Elme Communities.

Investors can compare ELME's WACC of 11.0% 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

ELME WACC: 11.00% for Elme Communities

Current inputs imply a 8.05% 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
11.00%
Cost of Equity
8.05%
Risk-Free Rate5.00%
Beta0.58
Market Risk Premium4.23%
Cost of Debt
12.73%
Pre-Tax Cost of Debt12.73%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 37.01%($147.50M)
Debt: 62.99%($251.04M)
Equity Component
2.98%
37.01% × 8.05%
Debt Component
8.02%
62.99% × 12.73%

Elme Communities (ELME) WACC in context

Elme Communities (ELME) currently screens with an estimated WACC of 11.00%. That blends a 8.05% cost of equity, a 12.73% pre-tax cost of debt, and a 37.01% 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 11.00% 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 0.58 and equity accounts for 37.01% 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.