QTS Realty Trust Inc (QTS) WACC Analysis

As of June 4, 2025, QTS Realty Trust Inc (QTS) carries a Weighted Average Cost of Capital (WACC) of 6.1%. WACC reflects the blended rate QTS Realty Trust Inc must pay to both equity and debt holders.

Within that, the cost of equity is 5.4%, the cost of debt is 4.0%, and the effective tax rate is 19.4%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 0.54 – 0.62
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.31

What It Means for Investors

With a selected WACC of 6.1%, QTS Realty Trust Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.