BPYU
Brookfield Property REIT Inc
Price:  
18.52 
USD
Volume:  
773,420.00
United States | Equity Real Estate Investment Trusts (REITs)
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BPYU WACC - Weighted Average Cost of Capital

The WACC of Brookfield Property REIT Inc (BPYU) is 12.7%.

The Cost of Equity of Brookfield Property REIT Inc (BPYU) is 29.55%.
The Cost of Debt of Brookfield Property REIT Inc (BPYU) is 12.55%.

Range Selected
Cost of equity 23.30% - 35.80% 29.55%
Tax rate 2.60% - 4.90% 3.75%
Cost of debt 4.50% - 20.60% 12.55%
WACC 5.2% - 20.3% 12.7%
WACC

BPYU WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 4.76 6.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 23.30% 35.80%
Tax rate 2.60% 4.90%
Debt/Equity ratio 22.8 22.8
Cost of debt 4.50% 20.60%
After-tax WACC 5.2% 20.3%
Selected WACC 12.7%

BPYU'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 BPYU:

cost_of_equity (29.55%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (4.76) + 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.