Question 1

What is American Realty Investors, Inc.'s WACC?

Accepted Answer

American Realty Investors, Inc. (ARL) has a Weighted Average Cost of Capital (WACC) of 5.82%. This is calculated using a Cost of Equity of 7.81% (via CAPM with a beta of 0.63) and a pre-tax Cost of Debt of 3.70%, with an equity weight of 59.32% in the capital structure.

Question 2

Is American Realty Investors, Inc.'s WACC high or low?

Accepted Answer

American Realty Investors, Inc.'s WACC of 5.82% 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 American Realty Investors, Inc.'s WACC calculated?

Accepted Answer

American Realty Investors, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.81% is derived from the CAPM model using a beta of 0.63. The pre-tax Cost of Debt (Rd) is 3.70%. The capital structure is 59.32% equity and 40.68% debt.

American Realty Investors, Inc. (ARL) — WACC 分析

WACC 构成

解读

American Realty Investors, Inc.（ARL）WACC：5.82%

WACC计算器

American Realty Investors, Inc.（ARL） WACC 解读

ARL 公司分析

ARL DCF 估值

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