Skip to content

LTC Properties, Inc. (LTC) — WACC Analysis

WACC Breakdown

LTC Properties, Inc. (LTC) has a weighted average cost of capital (WACC) of 6.6%. The cost of equity is 7.5%, derived from a beta of 0.31 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.0%. The capital structure is 74.7% equity and 25.3% debt.

Interpretation

A WACC of 6.6% suggests that the market views LTC Properties, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare LTC's WACC of 6.6% against industry peers to gauge its relative financing costs. A beta of 0.31 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

LTC WACC: 6.62% for LTC Properties, Inc.

Current inputs imply a 7.50% cost of equity and a 5.10% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

LTC Properties, Inc. Common Stock (LTC) WACC Results
Weighted Average Cost of Capital
6.62%
Cost of Equity
7.50%
Risk-Free Rate5.22%
Beta0.31
Market Risk Premium4.23%
Cost of Debt
4.03%
Pre-Tax Cost of Debt5.10%
Tax Rate21.00%
Tax Shield1.07%
Capital Structure
Equity: 74.65%($2288.83M)
Debt: 25.35%($777.09M)
Equity Component
5.60%
74.65% × 7.50%
Debt Component
1.02%
25.35% × 4.03%

LTC Properties, Inc. (LTC) WACC in context

LTC Properties, Inc. (LTC) currently screens with an estimated WACC of 6.62%. That blends a 7.50% cost of equity, a 5.10% pre-tax cost of debt, and a 74.65% 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 LTC WACC implies

A 6.62% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates LTC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.31 and equity accounts for 74.65% 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.