UE
Urban Edge Properties
Price:  
18.27 
USD
Volume:  
640,760
United States | Equity Real Estate Investment Trusts (REITs)

UE WACC - Weighted Average Cost of Capital

The WACC of Urban Edge Properties (UE) is 7.3%.

The Cost of Equity of Urban Edge Properties (UE) is 8.15%.
The Cost of Debt of Urban Edge Properties (UE) is 6.55%.

RangeSelected
Cost of equity7.3% - 9.0%8.15%
Tax rate4.7% - 6.0%5.35%
Cost of debt4.0% - 9.1%6.55%
WACC5.8% - 8.8%7.3%
WACC

UE WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.740.75
Additional risk adjustments0.0%0.5%
Cost of equity7.3%9.0%
Tax rate4.7%6.0%
Debt/Equity ratio
0.730.73
Cost of debt4.0%9.1%
After-tax WACC5.8%8.8%
Selected WACC7.3%

UE'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 UE:

cost_of_equity (8.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.74) + 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.