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Equinix, Inc. Common Stock REIT (EQIX) — WACC Analysis

WACC Breakdown

Equinix, Inc. Common Stock REIT (EQIX) has a weighted average cost of capital (WACC) of 7.5%. The cost of equity is 8.5%, derived from a beta of 0.84 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.3%. The capital structure is 83.8% equity and 16.2% debt.

Interpretation

A WACC of 7.5% suggests that the market views Equinix, Inc. Common Stock REIT as relatively low-risk, with a lower cost of financing.

Investors can compare EQIX's WACC of 7.5% against industry peers to gauge its relative financing costs. A beta of 0.84 reflects the stock's volatility relative to the broader market.

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VALUATION

EQIX WACC: 7.50% for Equinix, Inc. Common Stock REIT

Current inputs imply a 8.51% cost of equity and a 2.86% 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

Equinix, Inc. Common Stock REIT Common Stock (EQIX) WACC Results
Weighted Average Cost of Capital
7.50%
Cost of Equity
8.51%
Risk-Free Rate4.73%
Beta0.84
Market Risk Premium4.23%
Cost of Debt
2.26%
Pre-Tax Cost of Debt2.86%
Tax Rate21.00%
Tax Shield0.60%
Capital Structure
Equity: 83.83%($103.05B)
Debt: 16.17%($19.87B)
Equity Component
7.13%
83.83% × 8.51%
Debt Component
0.37%
16.17% × 2.26%

Equinix, Inc. Common Stock REIT (EQIX) WACC in context

Equinix, Inc. Common Stock REIT (EQIX) currently screens with an estimated WACC of 7.50%. That blends a 8.51% cost of equity, a 2.86% pre-tax cost of debt, and a 83.83% 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 EQIX WACC implies

A 7.50% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates EQIX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.84 and equity accounts for 83.83% 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.