AVB
Avalonbay Communities Inc
Price:  
203.38 
USD
Volume:  
1,172,920.00
United States | Equity Real Estate Investment Trusts (REITs)
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AVB WACC - Weighted Average Cost of Capital

The WACC of Avalonbay Communities Inc (AVB) is 7.2%.

The Cost of Equity of Avalonbay Communities Inc (AVB) is 7.95%.
The Cost of Debt of Avalonbay Communities Inc (AVB) is 4.45%.

Range Selected
Cost of equity 6.80% - 9.10% 7.95%
Tax rate 0.50% - 0.80% 0.65%
Cost of debt 4.00% - 4.90% 4.45%
WACC 6.2% - 8.2% 7.2%
WACC

AVB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.64 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.10%
Tax rate 0.50% 0.80%
Debt/Equity ratio 0.28 0.28
Cost of debt 4.00% 4.90%
After-tax WACC 6.2% 8.2%
Selected WACC 7.2%