AHT
Ashford Hospitality Trust Inc
Price:  
6.25 
USD
Volume:  
15,701.00
United States | Equity Real Estate Investment Trusts (REITs)
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AHT WACC - Weighted Average Cost of Capital

The WACC of Ashford Hospitality Trust Inc (AHT) is 16.8%.

The Cost of Equity of Ashford Hospitality Trust Inc (AHT) is 148.70%.
The Cost of Debt of Ashford Hospitality Trust Inc (AHT) is 15.45%.

Range Selected
Cost of equity 116.60% - 180.80% 148.70%
Tax rate 1.10% - 1.80% 1.45%
Cost of debt 7.00% - 23.90% 15.45%
WACC 8.2% - 25.3% 16.8%
WACC

AHT WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 24.5 31.41
Additional risk adjustments 0.0% 0.5%
Cost of equity 116.60% 180.80%
Tax rate 1.10% 1.80%
Debt/Equity ratio 81.99 81.99
Cost of debt 7.00% 23.90%
After-tax WACC 8.2% 25.3%
Selected WACC 16.8%

AHT's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for AHT:

cost_of_equity (148.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (24.5) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.