Question 1

What is Essex Property Trust, Inc's WACC?

Accepted Answer

Essex Property Trust, Inc (ESS) has a Weighted Average Cost of Capital (WACC) of 6.63%. This is calculated using a Cost of Equity of 7.93% (via CAPM with a beta of 0.69) and a pre-tax Cost of Debt of 3.82%, with an equity weight of 73.65% in the capital structure.

Question 2

Is Essex Property Trust, Inc's WACC high or low?

Accepted Answer

Essex Property Trust, Inc's WACC of 6.63% 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 Essex Property Trust, Inc's WACC calculated?

Accepted Answer

Essex Property Trust, Inc's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.93% is derived from the CAPM model using a beta of 0.69. The pre-tax Cost of Debt (Rd) is 3.82%. The capital structure is 73.65% equity and 26.35% debt.

Essex Property Trust, Inc (ESS) — WACC 分析

WACC 构成

解读

Essex Property Trust, Inc（ESS）WACC：6.63%

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Essex Property Trust, Inc（ESS） WACC 解读

ESS 公司分析

ESS DCF 估值

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