SITC
Site Centers Corp
Price:  
12.05 
USD
Volume:  
1,086,847.00
United States | Equity Real Estate Investment Trusts (REITs)
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SITC WACC - Weighted Average Cost of Capital

The WACC of Site Centers Corp (SITC) is 7.4%.

The Cost of Equity of Site Centers Corp (SITC) is 8.85%.
The Cost of Debt of Site Centers Corp (SITC) is 4.25%.

Range Selected
Cost of equity 7.70% - 10.00% 8.85%
Tax rate 0.80% - 1.00% 0.90%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.5% - 8.2% 7.4%
WACC

SITC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.83 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.00%
Tax rate 0.80% 1.00%
Debt/Equity ratio 0.48 0.48
Cost of debt 4.00% 4.50%
After-tax WACC 6.5% 8.2%
Selected WACC 7.4%

SITC'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 SITC:

cost_of_equity (8.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.83) + 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.