Question 1

What is Simon Property Group, Inc.'s WACC?

Accepted Answer

Simon Property Group, Inc. (SPG) has a Weighted Average Cost of Capital (WACC) of 7.02%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 0.98) and a pre-tax Cost of Debt of 3.73%, with an equity weight of 73.41% in the capital structure.

Question 2

Is Simon Property Group, Inc.'s WACC high or low?

Accepted Answer

Simon Property Group, Inc.'s WACC of 7.02% 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 Simon Property Group, Inc.'s WACC calculated?

Accepted Answer

Simon Property Group, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.49% is derived from the CAPM model using a beta of 0.98. The pre-tax Cost of Debt (Rd) is 3.73%. The capital structure is 73.41% equity and 26.59% debt.

Simon Property Group, Inc. (SPG) — WACC 分析

WACC 构成

解读

Simon Property Group, Inc.（SPG）WACC：7.02%

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Simon Property Group, Inc.（SPG） WACC 解读

SPG 公司分析

SPG DCF 估值

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