WSR
Whitestone REIT
Price:  
12.66 
USD
Volume:  
278,093.00
United States | Equity Real Estate Investment Trusts (REITs)
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WSR WACC - Weighted Average Cost of Capital

The WACC of Whitestone REIT (WSR) is 8.6%.

The Cost of Equity of Whitestone REIT (WSR) is 8.70%.
The Cost of Debt of Whitestone REIT (WSR) is 8.45%.

Range Selected
Cost of equity 7.40% - 10.00% 8.70%
Tax rate 1.80% - 2.80% 2.30%
Cost of debt 4.50% - 12.40% 8.45%
WACC 6.4% - 10.7% 8.6%
WACC

WSR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.77 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 10.00%
Tax rate 1.80% 2.80%
Debt/Equity ratio 0.5 0.5
Cost of debt 4.50% 12.40%
After-tax WACC 6.4% 10.7%
Selected WACC 8.6%

WSR'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 WSR:

cost_of_equity (8.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.77) + 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.