COR WACC - Weighted Average Cost of Capital
The WACC of CoreSite Realty Corp (COR) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.2% | 7.25% |
| Tax rate | 24.0% - 26.7% | 25.35% |
| Cost of debt | 4.4% - 4.6% | 4.5% |
| WACC | 6.1% - 7.8% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.52 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.2% |
| Tax rate | 24.0% | 26.7% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.4% | 4.6% |
| After-tax WACC | 6.1% | 7.8% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| COR | CoreSite Realty Corp | 0.08 | 0.11 | 0.1 |
| CUBE | CubeSmart | 0.31 | 0.42 | 0.34 |
| EPR | EPR Properties | 0.69 | 0.53 | 0.35 |
| FCPT | Four Corners Property Trust Inc | 0.41 | 0.21 | 0.16 |
| LSI | Life Storage Inc | 0.15 | 1.04 | 0.93 |
| NSA | National Storage Affiliates Trust | 0.72 | 0.61 | 0.4 |
| OUT | OUTFRONT Media Inc | 0.9 | 1.26 | 0.75 |
| QTS | QTS Realty Trust Inc | 0.31 | 0.56 | 0.45 |
| SAFE | Safehold Inc | 3.85 | 0.18 | 0.05 |
| UNIT | Uniti Group Inc | 5.09 | 0.29 | 0.06 |
| Low | High | |
| Unlevered beta | 0.27 | 0.37 |
| Relevered beta | 0.28 | 0.39 |
| Adjusted relevered beta | 0.52 | 0.59 |
COR'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 COR:
cost_of_equity (7.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.52) + 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.