Question 1

What is NexPoint Residential Trust Inc's WACC?

Accepted Answer

NexPoint Residential Trust Inc (NXRT) has a Weighted Average Cost of Capital (WACC) of 4.77%. This is calculated using a Cost of Equity of 8.71% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.86%, with an equity weight of 30.40% in the capital structure.

Question 2

Is NexPoint Residential Trust Inc's WACC high or low?

Accepted Answer

NexPoint Residential Trust Inc's WACC of 4.77% 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 NexPoint Residential Trust Inc's WACC calculated?

Accepted Answer

NexPoint Residential Trust Inc's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.71% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.86%. The capital structure is 30.40% equity and 69.60% debt.

NexPoint Residential Trust Inc (NXRT) — WACC 分析

WACC 构成

解读

NexPoint Residential Trust Inc（NXRT）WACC：4.77%

WACC计算器

NexPoint Residential Trust Inc（NXRT） WACC 解读

NXRT 公司分析

NXRT DCF 估值

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