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Belpointe PREP, LLC Class A Units (OZ) — WACC Analysis

WACC Breakdown

Belpointe PREP, LLC Class A Units (OZ) has a weighted average cost of capital (WACC) of 7.4%. The cost of equity is 7.1%, derived from a beta of 0.17 and a risk-free rate of 5.2%. The after-tax cost of debt is 7.6%. The capital structure is 35.6% equity and 64.4% debt.

Interpretation

A WACC of 7.4% suggests that the market views Belpointe PREP, LLC Class A Units as relatively low-risk, with a lower cost of financing.

Investors can compare OZ's WACC of 7.4% against industry peers to gauge its relative financing costs. A beta of 0.17 reflects the stock's volatility relative to the broader market.

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VALUATION

OZ WACC: 7.39% for Belpointe PREP, LLC Class A Units

Current inputs imply a 7.11% cost of equity and a 7.55% 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

Belpointe PREP, LLC Class A Units Common Stock (OZ) WACC Results
Weighted Average Cost of Capital
7.39%
Cost of Equity
7.11%
Risk-Free Rate5.22%
Beta0.17
Market Risk Premium4.23%
Cost of Debt
7.55%
Pre-Tax Cost of Debt7.55%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 35.61%($154.36M)
Debt: 64.39%($279.08M)
Equity Component
2.53%
35.61% × 7.11%
Debt Component
4.86%
64.39% × 7.55%

Belpointe PREP, LLC Class A Units (OZ) WACC in context

Belpointe PREP, LLC Class A Units (OZ) currently screens with an estimated WACC of 7.39%. That blends a 7.11% cost of equity, a 7.55% pre-tax cost of debt, and a 35.61% 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 OZ WACC implies

A 7.39% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates OZ

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.17 and equity accounts for 35.61% 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.