Question 1

What is Apple Hospitality REIT, Inc.'s WACC?

Accepted Answer

Apple Hospitality REIT, Inc. (APLE) has a Weighted Average Cost of Capital (WACC) of 7.32%. This is calculated using a Cost of Equity of 8.63% (via CAPM with a beta of 0.97) and a pre-tax Cost of Debt of 5.25%, with an equity weight of 70.89% in the capital structure.

Question 2

Is Apple Hospitality REIT, Inc.'s WACC high or low?

Accepted Answer

Apple Hospitality REIT, Inc.'s WACC of 7.32% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Apple Hospitality REIT, Inc.'s WACC calculated?

Accepted Answer

Apple Hospitality REIT, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.63% is derived from the CAPM model using a beta of 0.97. The pre-tax Cost of Debt (Rd) is 5.25%. The capital structure is 70.89% equity and 29.11% debt.

Apple Hospitality REIT, Inc. (APLE) — WACC 分析

WACC 构成

解读

Apple Hospitality REIT, Inc.（APLE）WACC：7.32%

WACC计算器

Apple Hospitality REIT, Inc.（APLE） WACC 解读

APLE 公司分析

APLE DCF 估值

继续做同行对比