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 6.29%. This is calculated using a Cost of Equity of 7.66% (via CAPM with a beta of 0.63) and a pre-tax Cost of Debt of 3.39%, with an equity weight of 72.50% 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 6.29% 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 7.66% is derived from the CAPM model using a beta of 0.63. The pre-tax Cost of Debt (Rd) is 3.39%. The capital structure is 72.50% equity and 27.50% debt.

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

WACC 构成

解读

Mid-America Apartment Communities, Inc.（MAA）WACC：6.29%

WACC计算器

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

MAA 公司分析

MAA DCF 估值

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