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LADDER CAPITAL CORP (LADR) — WACC Analysis

WACC Breakdown

LADDER CAPITAL CORP (LADR) has a weighted average cost of capital (WACC) of 5.0%. The cost of equity is 8.5%, derived from a beta of 0.77 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.9%. The capital structure is 23.3% equity and 76.7% debt.

Interpretation

A WACC of 5.0% suggests that the market views LADDER CAPITAL CORP as relatively low-risk, with a lower cost of financing.

Investors can compare LADR's WACC of 5.0% against industry peers to gauge its relative financing costs. A beta of 0.77 reflects the stock's volatility relative to the broader market.

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VALUATION

LADR WACC: 4.95% for LADDER CAPITAL CORP

Current inputs imply a 8.54% cost of equity and a 4.89% 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

LADDER CAPITAL CORP Common Stock (LADR) WACC Results
Weighted Average Cost of Capital
4.95%
Cost of Equity
8.54%
Risk-Free Rate4.96%
Beta0.77
Market Risk Premium4.23%
Cost of Debt
3.86%
Pre-Tax Cost of Debt4.89%
Tax Rate21.00%
Tax Shield1.03%
Capital Structure
Equity: 23.29%($1220.44M)
Debt: 76.71%($4019.18M)
Equity Component
1.99%
23.29% × 8.54%
Debt Component
2.96%
76.71% × 3.86%

LADDER CAPITAL CORP (LADR) WACC in context

LADDER CAPITAL CORP (LADR) currently screens with an estimated WACC of 4.95%. That blends a 8.54% cost of equity, a 4.89% pre-tax cost of debt, and a 23.29% 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 LADR WACC implies

A 4.95% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates LADR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.77 and equity accounts for 23.29% 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.