Question 1

What is Equinix, Inc. Common Stock REIT's WACC?

Accepted Answer

Equinix, Inc. Common Stock REIT (EQIX) has a Weighted Average Cost of Capital (WACC) of 7.31%. This is calculated using a Cost of Equity of 8.32% (via CAPM with a beta of 0.83) and a pre-tax Cost of Debt of 2.80%, with an equity weight of 83.42% in the capital structure.

Question 2

Is Equinix, Inc. Common Stock REIT's WACC high or low?

Accepted Answer

Equinix, Inc. Common Stock REIT's WACC of 7.31% 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 Equinix, Inc. Common Stock REIT's WACC calculated?

Accepted Answer

Equinix, Inc. Common Stock REIT's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.32% is derived from the CAPM model using a beta of 0.83. The pre-tax Cost of Debt (Rd) is 2.80%. The capital structure is 83.42% equity and 16.58% debt.

Equinix, Inc. Common Stock REIT (EQIX) — WACC 分析

WACC 构成

解读

Equinix, Inc. Common Stock REIT（EQIX）WACC：7.31%

WACC计算器

Equinix, Inc. Common Stock REIT（EQIX） WACC 解读

EQIX 公司分析

EQIX DCF 估值

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