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Mid-America Apartment Communities, Inc. (MAA) — WACC Analysis

WACC Breakdown

Mid-America Apartment Communities, Inc. (MAA) has a weighted average cost of capital (WACC) of 6.4%. The cost of equity is 7.9%, derived from a beta of 0.60 and a risk-free rate of 4.8%. The after-tax cost of debt is 2.7%. The capital structure is 72.6% equity and 27.4% debt.

Interpretation

A WACC of 6.4% suggests that the market views Mid-America Apartment Communities, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare MAA's WACC of 6.4% against industry peers to gauge its relative financing costs. A beta of 0.60 reflects the stock's volatility relative to the broader market.

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VALUATION

MAA WACC: 6.43% for Mid-America Apartment Communities, Inc.

Current inputs imply a 7.85% cost of equity and a 3.39% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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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

Mid-America Apartment Communities, Inc. Common Stock (MAA) WACC Results
Weighted Average Cost of Capital
6.43%
Cost of Equity
7.85%
Risk-Free Rate4.75%
Beta0.60
Market Risk Premium4.23%
Cost of Debt
2.67%
Pre-Tax Cost of Debt3.39%
Tax Rate21.00%
Tax Shield0.71%
Capital Structure
Equity: 72.63%($15.01B)
Debt: 27.37%($5656.52M)
Equity Component
5.70%
72.63% × 7.85%
Debt Component
0.73%
27.37% × 2.67%

Mid-America Apartment Communities, Inc. (MAA) WACC in context

Mid-America Apartment Communities, Inc. (MAA) currently screens with an estimated WACC of 6.43%. That blends a 7.85% cost of equity, a 3.39% pre-tax cost of debt, and a 72.63% 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 MAA WACC implies

A 6.43% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates MAA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.60 and equity accounts for 72.63% 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.