CUZ
Cousins Properties Inc
Price:  
28.23 
USD
Volume:  
1,813,324.00
United States | Equity Real Estate Investment Trusts (REITs)
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CUZ WACC - Weighted Average Cost of Capital

The WACC of Cousins Properties Inc (CUZ) is 6.2%.

The Cost of Equity of Cousins Properties Inc (CUZ) is 7.05%.
The Cost of Debt of Cousins Properties Inc (CUZ) is 6.55%.

Range Selected
Cost of equity 5.70% - 8.40% 7.05%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 9.10% 6.55%
WACC 4.6% - 7.7% 6.2%
WACC

CUZ WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.4 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 8.40%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.65 0.65
Cost of debt 4.00% 9.10%
After-tax WACC 4.6% 7.7%
Selected WACC 6.2%

CUZ'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 CUZ:

cost_of_equity (7.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.4) + 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.