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LXP Industrial Trust (LXP) — WACC Analysis

WACC Breakdown

LXP Industrial Trust (LXP) has a weighted average cost of capital (WACC) of 7.0%. The cost of equity is 8.4%, derived from a beta of 0.73 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.3%. The capital structure is 72.6% equity and 27.4% debt.

Interpretation

A WACC of 7.0% suggests that the market views LXP Industrial Trust as relatively low-risk, with a lower cost of financing.

Investors can compare LXP's WACC of 7.0% against industry peers to gauge its relative financing costs. A beta of 0.73 reflects the stock's volatility relative to the broader market.

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VALUATION

LXP WACC: 7.03% for LXP Industrial Trust

Current inputs imply a 8.45% cost of equity and a 4.16% 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

LXP Industrial Trust Common Stock (LXP) WACC Results
Weighted Average Cost of Capital
7.03%
Cost of Equity
8.45%
Risk-Free Rate4.98%
Beta0.73
Market Risk Premium4.23%
Cost of Debt
3.28%
Pre-Tax Cost of Debt4.16%
Tax Rate21.00%
Tax Shield0.87%
Capital Structure
Equity: 72.57%($3606.66M)
Debt: 27.43%($1363.19M)
Equity Component
6.13%
72.57% × 8.45%
Debt Component
0.90%
27.43% × 3.28%

LXP Industrial Trust (LXP) WACC in context

LXP Industrial Trust (LXP) currently screens with an estimated WACC of 7.03%. That blends a 8.45% cost of equity, a 4.16% pre-tax cost of debt, and a 72.57% 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 LXP WACC implies

A 7.03% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates LXP

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.73 and equity accounts for 72.57% 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.