MAC
Macerich Co
Price:  
15.06 
USD
Volume:  
1,033,123.00
United States | Equity Real Estate Investment Trusts (REITs)
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MAC WACC - Weighted Average Cost of Capital

The WACC of Macerich Co (MAC) is 7.3%.

The Cost of Equity of Macerich Co (MAC) is 8.45%.
The Cost of Debt of Macerich Co (MAC) is 6.55%.

Range Selected
Cost of equity 6.90% - 10.00% 8.45%
Tax rate 0.50% - 0.80% 0.65%
Cost of debt 4.00% - 9.10% 6.55%
WACC 5.2% - 9.4% 7.3%
WACC

MAC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.65 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 10.00%
Tax rate 0.50% 0.80%
Debt/Equity ratio 1.3 1.3
Cost of debt 4.00% 9.10%
After-tax WACC 5.2% 9.4%
Selected WACC 7.3%

MAC'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 MAC:

cost_of_equity (8.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.65) + 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.