Question 1

What is Mid-America Apartment Communities, Inc.'s WACC?

Accepted Answer

Mid-America Apartment Communities, Inc. (MAA) has a Weighted Average Cost of Capital (WACC) of 6.37%. This is calculated using a Cost of Equity of 7.70% (via CAPM with a beta of 0.61) and a pre-tax Cost of Debt of 3.39%, with an equity weight of 73.51% in the capital structure.

Question 2

Is Mid-America Apartment Communities, Inc.'s WACC high or low?

Accepted Answer

Mid-America Apartment Communities, Inc.'s WACC of 6.37% 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 Mid-America Apartment Communities, Inc.'s WACC calculated?

Accepted Answer

Mid-America Apartment Communities, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.70% is derived from the CAPM model using a beta of 0.61. The pre-tax Cost of Debt (Rd) is 3.39%. The capital structure is 73.51% equity and 26.49% debt.

Mid-America Apartment Communities, Inc. (MAA) — WACC 分析

WACC 构成

解读

Mid-America Apartment Communities, Inc.（MAA）WACC：6.37%

WACC计算器

Mid-America Apartment Communities, Inc.（MAA） WACC 解读

MAA 公司分析

MAA DCF 估值

继续做同行对比