Skip to content

Sabra Healthcare REIT, Inc. (SBRA) — WACC Analysis

WACC Breakdown

Sabra Healthcare REIT, Inc. (SBRA) has a weighted average cost of capital (WACC) of 6.2%. The cost of equity is 7.6%, derived from a beta of 0.44 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.5%. The capital structure is 66.6% equity and 33.4% debt.

Interpretation

A WACC of 6.2% suggests that the market views Sabra Healthcare REIT, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare SBRA's WACC of 6.2% against industry peers to gauge its relative financing costs. A beta of 0.44 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

SBRA WACC: 6.23% for Sabra Healthcare REIT, Inc.

Current inputs imply a 7.61% cost of equity and a 4.42% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Sabra Healthcare REIT, Inc. Common Stock (SBRA) WACC Results
Weighted Average Cost of Capital
6.23%
Cost of Equity
7.61%
Risk-Free Rate4.96%
Beta0.44
Market Risk Premium4.23%
Cost of Debt
3.49%
Pre-Tax Cost of Debt4.42%
Tax Rate21.00%
Tax Shield0.93%
Capital Structure
Equity: 66.60%($5236.99M)
Debt: 33.40%($2626.16M)
Equity Component
5.07%
66.60% × 7.61%
Debt Component
1.17%
33.40% × 3.49%

Sabra Healthcare REIT, Inc. (SBRA) WACC in context

Sabra Healthcare REIT, Inc. (SBRA) currently screens with an estimated WACC of 6.23%. That blends a 7.61% cost of equity, a 4.42% pre-tax cost of debt, and a 66.60% 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 SBRA WACC implies

A 6.23% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SBRA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.44 and equity accounts for 66.60% 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.