NSA
National Storage Affiliates Trust
Price:  
33.74 
USD
Volume:  
1,523,299.00
United States | Equity Real Estate Investment Trusts (REITs)
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NSA WACC - Weighted Average Cost of Capital

The WACC of National Storage Affiliates Trust (NSA) is 6.5%.

The Cost of Equity of National Storage Affiliates Trust (NSA) is 6.55%.
The Cost of Debt of National Storage Affiliates Trust (NSA) is 6.55%.

Range Selected
Cost of equity 5.60% - 7.50% 6.55%
Tax rate 1.70% - 2.00% 1.85%
Cost of debt 4.00% - 9.10% 6.55%
WACC 4.9% - 8.1% 6.5%
WACC

NSA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.38 0.47
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 7.50%
Tax rate 1.70% 2.00%
Debt/Equity ratio 0.75 0.75
Cost of debt 4.00% 9.10%
After-tax WACC 4.9% 8.1%
Selected WACC 6.5%

NSA'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 NSA:

cost_of_equity (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.38) + 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.