Question 1

What is Realty Income Corporation's WACC?

Accepted Answer

Realty Income Corporation (O) has a Weighted Average Cost of Capital (WACC) of 5.98%. This is calculated using a Cost of Equity of 7.06% (via CAPM with a beta of 0.42) and a pre-tax Cost of Debt of 4.57%, with an equity weight of 68.68% in the capital structure.

Question 2

Is Realty Income Corporation's WACC high or low?

Accepted Answer

Realty Income Corporation's WACC of 5.98% 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 Realty Income Corporation's WACC calculated?

Accepted Answer

Realty Income Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.06% is derived from the CAPM model using a beta of 0.42. The pre-tax Cost of Debt (Rd) is 4.57%. The capital structure is 68.68% equity and 31.32% debt.

Realty Income Corporation (O) — WACC 分析

WACC 构成

解读

Realty Income Corporation（O）WACC：5.98%

WACC计算器

Realty Income Corporation（O） WACC 解读

O 公司分析

O DCF 估值

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