BRST WACC - Weighted Average Cost of Capital
The WACC of Broad Street Realty Inc (BRST) is 11.5%.
| Range | Selected | |
| Cost of equity | 19.0% - 71.7% | 45.35% |
| Tax rate | 24.5% - 25.4% | 24.95% |
| Cost of debt | 6.6% - 23.9% | 15.25% |
| WACC | 5.1% - 18.0% | 11.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 3.28 | 11.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 19.0% | 71.7% |
| Tax rate | 24.5% | 25.4% |
| Debt/Equity ratio | 351.47 | 351.47 |
| Cost of debt | 6.6% | 23.9% |
| After-tax WACC | 5.1% | 18.0% |
| Selected WACC | 11.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BRST | Broad Street Realty Inc | 351.47 | 2.68 | 0.01 |
| GYRO | Gyrodyne LLC | 0.67 | 0.46 | 0.31 |
| HHBT | HH Biotechnology Holdings Co | 0.16 | -0.31 | -0.28 |
| HOOB | Holobeam Inc | 1.09 | -0.01 | -0.01 |
| MAYS | J.W. Mays Inc | 0.05 | -0.02 | -0.02 |
| NEN | New England Realty Associates LP | 1.53 | -0.18 | -0.08 |
| TPHS | Trinity Place Holdings Inc | 82.09 | 1.74 | 0.03 |
| UFC.V | Urbanfund Corp | 1.46 | 0.22 | 0.11 |
| UK | Ucommune International Ltd | 17.93 | 0.54 | 0.04 |
| VCOM.V | Vivere Communities Inc | 2.31 | 1.06 | 0.39 |
| ZDPY | Zoned Properties Inc | 1.68 | 0.47 | 0.21 |
| Low | High | |
| Unlevered beta | 0.01 | 0.04 |
| Relevered beta | 4.4 | 17.33 |
| Adjusted relevered beta | 3.28 | 11.94 |
BRST'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 BRST:
cost_of_equity (45.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.28) + 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.