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W.P. Carey Inc. (REIT) (WPC) — WACC Analysis

WACC Breakdown

W.P. Carey Inc. (REIT) (WPC) has a weighted average cost of capital (WACC) of 8.2%. The cost of equity is 7.3%, derived from a beta of 0.41 and a risk-free rate of 4.7%. The after-tax cost of debt is 18.9%. The capital structure is 92.6% equity and 7.4% debt.

Interpretation

A WACC of 8.2% is moderate, reflecting the market's balanced risk assessment of W.P. Carey Inc. (REIT).

Investors can compare WPC's WACC of 8.2% against industry peers to gauge its relative financing costs. A beta of 0.41 reflects the stock's volatility relative to the broader market.

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VALUATION

WPC WACC: 8.16% for W.P. Carey Inc. (REIT)

Current inputs imply a 7.30% cost of equity and a 23.94% 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

W.P. Carey Inc. (REIT) Common Stock (WPC) WACC Results
Weighted Average Cost of Capital
8.16%
Cost of Equity
7.30%
Risk-Free Rate4.73%
Beta0.41
Market Risk Premium4.23%
Cost of Debt
18.91%
Pre-Tax Cost of Debt23.94%
Tax Rate21.00%
Tax Shield5.03%
Capital Structure
Equity: 92.58%($16.06B)
Debt: 7.42%($1286.90M)
Equity Component
6.76%
92.58% × 7.30%
Debt Component
1.40%
7.42% × 18.91%

W.P. Carey Inc. (REIT) (WPC) WACC in context

W.P. Carey Inc. (REIT) (WPC) currently screens with an estimated WACC of 8.16%. That blends a 7.30% cost of equity, a 23.94% pre-tax cost of debt, and a 92.58% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What WPC WACC implies

A 8.16% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates WPC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.41 and equity accounts for 92.58% 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.