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Safehold Inc. (SAFE) — WACC Analysis

WACC Breakdown

Safehold Inc. (SAFE) has a weighted average cost of capital (WACC) of 4.6%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.6%. The capital structure is 17.4% equity and 82.6% debt.

Interpretation

A WACC of 4.6% suggests that the market views Safehold Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare SAFE's WACC of 4.6% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

SAFE WACC: 4.60% for Safehold Inc.

Current inputs imply a 9.19% cost of equity and a 4.59% 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

Safehold Inc. Common Stock (SAFE) WACC Results
Weighted Average Cost of Capital
4.60%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.63%
Pre-Tax Cost of Debt4.59%
Tax Rate21.00%
Tax Shield0.96%
Capital Structure
Equity: 17.41%($980.81M)
Debt: 82.59%($4653.71M)
Equity Component
1.60%
17.41% × 9.19%
Debt Component
3.00%
82.59% × 3.63%

Safehold Inc. (SAFE) WACC in context

Safehold Inc. (SAFE) currently screens with an estimated WACC of 4.60%. That blends a 9.19% cost of equity, a 4.59% pre-tax cost of debt, and a 17.41% 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 SAFE WACC implies

A 4.60% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SAFE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 17.41% 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.