Question 1

What is Invitation Homes Inc. Common Stock's WACC?

Accepted Answer

Invitation Homes Inc. Common Stock (INVH) has a Weighted Average Cost of Capital (WACC) of 6.50%. This is calculated using a Cost of Equity of 7.68% (via CAPM with a beta of 0.69) and a pre-tax Cost of Debt of 4.22%, with an equity weight of 65.91% in the capital structure.

Question 2

Is Invitation Homes Inc. Common Stock's WACC high or low?

Accepted Answer

Invitation Homes Inc. Common Stock's WACC of 6.50% 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 Invitation Homes Inc. Common Stock's WACC calculated?

Accepted Answer

Invitation Homes Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.68% is derived from the CAPM model using a beta of 0.69. The pre-tax Cost of Debt (Rd) is 4.22%. The capital structure is 65.91% equity and 34.09% debt.

Invitation Homes Inc. Common Stock (INVH) — WACC 分析

WACC 构成

解读

Invitation Homes Inc. Common Stock（INVH）WACC：6.50%

WACC计算器

Invitation Homes Inc. Common Stock（INVH） WACC 解读

INVH 公司分析

INVH DCF 估值

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