LAD
Lithia Motors Inc
Price:  
256.34 
USD
Volume:  
202,068.00
United States | Specialty Retail
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LAD WACC - Weighted Average Cost of Capital

The WACC of Lithia Motors Inc (LAD) is 6.8%.

The Cost of Equity of Lithia Motors Inc (LAD) is 10.40%.
The Cost of Debt of Lithia Motors Inc (LAD) is 6.05%.

Range Selected
Cost of equity 9.00% - 11.80% 10.40%
Tax rate 27.30% - 27.50% 27.40%
Cost of debt 4.40% - 7.70% 6.05%
WACC 5.5% - 8.0% 6.8%
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 1.11 1.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 11.80%
Tax rate 27.30% 27.50%
Debt/Equity ratio 1.55 1.55
Cost of debt 4.40% 7.70%
After-tax WACC 5.5% 8.0%
Selected WACC 6.8%