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Kite Realty Group Trust (KRG) — WACC Analysis

WACC Breakdown

Kite Realty Group Trust (KRG) has a weighted average cost of capital (WACC) of 6.8%. The cost of equity is 8.6%, derived from a beta of 0.78 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.6%. The capital structure is 64.7% equity and 35.3% debt.

Interpretation

A WACC of 6.8% suggests that the market views Kite Realty Group Trust as relatively low-risk, with a lower cost of financing.

Investors can compare KRG's WACC of 6.8% against industry peers to gauge its relative financing costs. A beta of 0.78 reflects the stock's volatility relative to the broader market.

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VALUATION

KRG WACC: 6.81% for Kite Realty Group Trust

Current inputs imply a 8.57% cost of equity and a 4.54% 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

Kite Realty Group Trust Common Stock (KRG) WACC Results
Weighted Average Cost of Capital
6.81%
Cost of Equity
8.57%
Risk-Free Rate4.96%
Beta0.78
Market Risk Premium4.23%
Cost of Debt
3.59%
Pre-Tax Cost of Debt4.54%
Tax Rate21.00%
Tax Shield0.95%
Capital Structure
Equity: 64.71%($5213.03M)
Debt: 35.29%($2842.76M)
Equity Component
5.55%
64.71% × 8.57%
Debt Component
1.27%
35.29% × 3.59%

Kite Realty Group Trust (KRG) WACC in context

Kite Realty Group Trust (KRG) currently screens with an estimated WACC of 6.81%. That blends a 8.57% cost of equity, a 4.54% pre-tax cost of debt, and a 64.71% 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 KRG WACC implies

A 6.81% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates KRG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.78 and equity accounts for 64.71% 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.