LAD
Lithia Motors Inc
Price:  
260.98 
USD
Volume:  
211,174.00
United States | Specialty Retail
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LAD WACC - Weighted Average Cost of Capital

The WACC of Lithia Motors Inc (LAD) is 6.7%.

The Cost of Equity of Lithia Motors Inc (LAD) is 10.35%.
The Cost of Debt of Lithia Motors Inc (LAD) is 6.05%.

Range Selected
Cost of equity 8.90% - 11.80% 10.35%
Tax rate 27.30% - 27.50% 27.40%
Cost of debt 4.40% - 7.70% 6.05%
WACC 5.4% - 8.0% 6.7%
WACC

LAD WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.08 1.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.80%
Tax rate 27.30% 27.50%
Debt/Equity ratio 1.57 1.57
Cost of debt 4.40% 7.70%
After-tax WACC 5.4% 8.0%
Selected WACC 6.7%