Question 1

What is Service Properties Trust Common Stock's WACC?

Accepted Answer

Service Properties Trust Common Stock (SVC) has a Weighted Average Cost of Capital (WACC) of 7.00%. This is calculated using a Cost of Equity of 9.83% (via CAPM with a beta of 1.46) and a pre-tax Cost of Debt of 6.58%, with an equity weight of 12.86% in the capital structure.

Question 2

Is Service Properties Trust Common Stock's WACC high or low?

Accepted Answer

Service Properties Trust Common Stock's WACC of 7.00% 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 Service Properties Trust Common Stock's WACC calculated?

Accepted Answer

Service Properties Trust Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.83% is derived from the CAPM model using a beta of 1.46. The pre-tax Cost of Debt (Rd) is 6.58%. The capital structure is 12.86% equity and 87.14% debt.

Service Properties Trust Common Stock (SVC) — WACC 分析

WACC 构成

解读

Service Properties Trust Common Stock（SVC）WACC：7.00%

WACC计算器

Service Properties Trust Common Stock（SVC） WACC 解读

SVC 公司分析

SVC DCF 估值

继续做同行对比