NTST
Netstreit Corp
Price:  
15.98 
USD
Volume:  
441,139.00
United States | Equity Real Estate Investment Trusts (REITs)
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NTST WACC - Weighted Average Cost of Capital

The WACC of Netstreit Corp (NTST) is 7.0%.

The Cost of Equity of Netstreit Corp (NTST) is 7.25%.
The Cost of Debt of Netstreit Corp (NTST) is 6.55%.

Range Selected
Cost of equity 6.20% - 8.30% 7.25%
Tax rate 0.60% - 1.20% 0.90%
Cost of debt 4.00% - 9.10% 6.55%
WACC 5.3% - 8.6% 7.0%
WACC

NTST WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.5 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 8.30%
Tax rate 0.60% 1.20%
Debt/Equity ratio 0.66 0.66
Cost of debt 4.00% 9.10%
After-tax WACC 5.3% 8.6%
Selected WACC 7.0%

NTST'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 NTST:

cost_of_equity (7.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.5) + 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.