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 6.95%. This is calculated using a Cost of Equity of 8.70% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.62%, with an equity weight of 69.94% 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 6.95% 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 8.70% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.62%. The capital structure is 69.94% equity and 30.06% debt.

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

WACC 构成

解读

Simon Property Group, Inc.（SPG）WACC：6.95%

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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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