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STAG INDUSTRIAL, INC. (STAG) — WACC Analysis

WACC Breakdown

STAG INDUSTRIAL, INC. (STAG) has a weighted average cost of capital (WACC) of 7.2%. The cost of equity is 8.6%, derived from a beta of 0.77 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.3%. The capital structure is 67.8% equity and 32.2% debt.

Interpretation

A WACC of 7.2% suggests that the market views STAG INDUSTRIAL, INC. as relatively low-risk, with a lower cost of financing.

Investors can compare STAG's WACC of 7.2% against industry peers to gauge its relative financing costs. A beta of 0.77 reflects the stock's volatility relative to the broader market.

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VALUATION

STAG WACC: 7.23% for STAG INDUSTRIAL, INC.

Current inputs imply a 8.63% cost of equity and a 4.30% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

STAG INDUSTRIAL, INC. Common Stock (STAG) WACC Results
Weighted Average Cost of Capital
7.23%
Cost of Equity
8.63%
Risk-Free Rate5.05%
Beta0.77
Market Risk Premium4.23%
Cost of Debt
4.30%
Pre-Tax Cost of Debt4.30%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 67.78%($7186.48M)
Debt: 32.22%($3416.93M)
Equity Component
5.85%
67.78% × 8.63%
Debt Component
1.38%
32.22% × 4.30%

STAG INDUSTRIAL, INC. (STAG) WACC in context

STAG INDUSTRIAL, INC. (STAG) currently screens with an estimated WACC of 7.23%. That blends a 8.63% cost of equity, a 4.30% pre-tax cost of debt, and a 67.78% 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 STAG WACC implies

A 7.23% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates STAG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.77 and equity accounts for 67.78% 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.