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Gladstone Commercial Corporation - REIT (GOOD) — WACC Analysis

WACC Breakdown

Gladstone Commercial Corporation - REIT (GOOD) has a weighted average cost of capital (WACC) of 6.7%. The cost of equity is 8.5%, derived from a beta of 0.67 and a risk-free rate of 5.2%. The after-tax cost of debt is 5.3%. The capital structure is 41.9% equity and 58.1% debt.

Interpretation

A WACC of 6.7% suggests that the market views Gladstone Commercial Corporation - REIT as relatively low-risk, with a lower cost of financing.

Investors can compare GOOD's WACC of 6.7% against industry peers to gauge its relative financing costs. A beta of 0.67 reflects the stock's volatility relative to the broader market.

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VALUATION

GOOD WACC: 6.68% for Gladstone Commercial Corporation - REIT

Current inputs imply a 8.52% cost of equity and a 5.35% 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
[03]
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

Gladstone Commercial Corporation - REIT Common Stock (GOOD) WACC Results
Weighted Average Cost of Capital
6.68%
Cost of Equity
8.52%
Risk-Free Rate5.22%
Beta0.67
Market Risk Premium4.23%
Cost of Debt
5.35%
Pre-Tax Cost of Debt5.35%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 41.87%($613.81M)
Debt: 58.13%($852.05M)
Equity Component
3.57%
41.87% × 8.52%
Debt Component
3.11%
58.13% × 5.35%

Gladstone Commercial Corporation - REIT (GOOD) WACC in context

Gladstone Commercial Corporation - REIT (GOOD) currently screens with an estimated WACC of 6.68%. That blends a 8.52% cost of equity, a 5.35% pre-tax cost of debt, and a 41.87% 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 GOOD WACC implies

A 6.68% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates GOOD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.67 and equity accounts for 41.87% 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.