The WACC of American Homes 4 Rent (AMH) is 6.3%.
Range | Selected | |
Cost of equity | 5.80% - 8.40% | 7.10% |
Tax rate | 26.20% - 27.00% | 26.60% |
Cost of debt | 4.00% - 7.00% | 5.50% |
WACC | 5.1% - 7.6% | 6.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.42 | 0.63 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.80% | 8.40% |
Tax rate | 26.20% | 27.00% |
Debt/Equity ratio | 0.32 | 0.32 |
Cost of debt | 4.00% | 7.00% |
After-tax WACC | 5.1% | 7.6% |
Selected WACC | 6.3% | |