LAD
Lithia Motors Inc
Price:  
386.90 
USD
Volume:  
84,703.00
United States | Specialty Retail
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LAD WACC - Weighted Average Cost of Capital

The WACC of Lithia Motors Inc (LAD) is 7.0%.

The Cost of Equity of Lithia Motors Inc (LAD) is 9.85%.
The Cost of Debt of Lithia Motors Inc (LAD) is 5.95%.

Range Selected
Cost of equity 8.50% - 11.20% 9.85%
Tax rate 27.30% - 27.50% 27.40%
Cost of debt 4.40% - 7.50% 5.95%
WACC 5.8% - 8.2% 7.0%
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 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.20%
Tax rate 27.30% 27.50%
Debt/Equity ratio 1.06 1.06
Cost of debt 4.40% 7.50%
After-tax WACC 5.8% 8.2%
Selected WACC 7.0%