CDR WACC - Weighted Average Cost of Capital
The WACC of Cedar Realty Trust Inc (CDR) is 8.9%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.2% | 9.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 18.2% | 11.1% |
| WACC | 5.3% - 12.4% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.87 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.34 | 1.34 |
| Cost of debt | 4.0% | 18.2% |
| After-tax WACC | 5.3% | 12.4% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CDR | Cedar Realty Trust Inc | 1.34 | 1.17 | 0.59 |
| CBLAQ | CBL & Associates Properties Inc | 34.64 | 1.35 | 0.05 |
| CRT.UN.TO | CT Real Estate Investment Trust | 1.85 | 0.98 | 0.42 |
| NTST | Netstreit Corp | 0.66 | 0.34 | 0.23 |
| PLZ.UN.TO | Plaza Retail REIT | 1.58 | 0.88 | 0.41 |
| SGR.UN.TO | Slate Grocery REIT | 1.88 | 0.92 | 0.39 |
| SRG | Seritage Growth Properties | 1.44 | 0.67 | 0.33 |
| UBA | Urstadt Biddle Properties Inc | 0.4 | 0.79 | 0.61 |
| WPG | Washington Prime Group Inc | 153.93 | 1.55 | 0.01 |
| WSR | Whitestone REIT | 0.49 | 0.36 | 0.26 |
| Low | High | |
| Unlevered beta | 0.3 | 0.4 |
| Relevered beta | 0.81 | 1.01 |
| Adjusted relevered beta | 0.87 | 1.01 |
CDR'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 CDR:
cost_of_equity (9.85%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.87) + 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.