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New England Realty Associates Limited Partnership (NEN) — WACC Analysis

WACC Breakdown

New England Realty Associates Limited Partnership (NEN) has a weighted average cost of capital (WACC) of 4.2%. The cost of equity is 6.9%, derived from a beta of 0.09 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.3%. The capital structure is 24.7% equity and 75.3% debt.

Interpretation

A WACC of 4.2% suggests that the market views New England Realty Associates Limited Partnership as relatively low-risk, with a lower cost of financing.

Investors can compare NEN's WACC of 4.2% against industry peers to gauge its relative financing costs. A beta of 0.09 reflects the stock's volatility relative to the broader market.

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VALUATION

NEN WACC: 4.19% for New England Realty Associates Limited Partnership

Current inputs imply a 6.90% cost of equity and a 4.18% 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%

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New England Realty Associates Limited Partnership Common Stock (NEN) WACC Results
Weighted Average Cost of Capital
4.19%
Cost of Equity
6.90%
Risk-Free Rate5.24%
Beta0.09
Market Risk Premium4.23%
Cost of Debt
3.30%
Pre-Tax Cost of Debt4.18%
Tax Rate21.00%
Tax Shield0.88%
Capital Structure
Equity: 24.67%($173.39M)
Debt: 75.33%($529.40M)
Equity Component
1.70%
24.67% × 6.90%
Debt Component
2.48%
75.33% × 3.30%

New England Realty Associates Limited Partnership (NEN) WACC in context

New England Realty Associates Limited Partnership (NEN) currently screens with an estimated WACC of 4.19%. That blends a 6.90% cost of equity, a 4.18% pre-tax cost of debt, and a 24.67% 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 NEN WACC implies

A 4.19% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates NEN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.09 and equity accounts for 24.67% 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.