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 14.23%. This is calculated using a Cost of Equity of 8.63% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 167.08%, with an equity weight of 95.46% 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 14.23% is above the typical range, indicating higher perceived risk and cost of capital. 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 8.63% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 167.08%. The capital structure is 95.46% equity and 4.54% debt.

NexPoint Residential Trust Inc (NXRT) — WACC 分析

WACC 构成

解读

NexPoint Residential Trust Inc（NXRT）WACC：14.23%

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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