iStar Inc (STAR) WACC Analysis

As of June 4, 2025, iStar Inc (STAR) carries a Weighted Average Cost of Capital (WACC) of 6.9%. WACC reflects the blended rate iStar Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.6%, the cost of debt is 4.3%, and the effective tax rate is 0.5%.

Breakdown of WACC Components

• Long-term bond rate: 4.2% – 4.7%
• Equity market risk premium: 5.0% – 6.0%
• Adjusted beta: 0.68 – 1.29
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.54

What It Means for Investors

With a selected WACC of 6.9%, iStar Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.