Question 1

What is CTO Realty Growth, Inc.'s WACC?

Accepted Answer

CTO Realty Growth, Inc. (CTO) has a Weighted Average Cost of Capital (WACC) of 5.38%. This is calculated using a Cost of Equity of 7.22% (via CAPM with a beta of 0.55) and a pre-tax Cost of Debt of 4.37%, with an equity weight of 51.07% in the capital structure.

Question 2

Is CTO Realty Growth, Inc.'s WACC high or low?

Accepted Answer

CTO Realty Growth, Inc.'s WACC of 5.38% 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 CTO Realty Growth, Inc.'s WACC calculated?

Accepted Answer

CTO Realty Growth, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.22% is derived from the CAPM model using a beta of 0.55. The pre-tax Cost of Debt (Rd) is 4.37%. The capital structure is 51.07% equity and 48.93% debt.

CTO Realty Growth, Inc. (CTO) — WACC 分析

WACC 构成

解读

CTO Realty Growth, Inc.（CTO）WACC：5.38%

WACC计算器

CTO Realty Growth, Inc.（CTO） WACC 解读

CTO 公司分析

CTO DCF 估值

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