LAD
Lithia Motors Inc
Price:  
275.94 
USD
Volume:  
247,899.00
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 9.85%.
The Cost of Debt of Lithia Motors Inc (LAD) is 5.95%.

Range Selected
Cost of equity 8.30% - 11.40% 9.85%
Tax rate 27.30% - 27.50% 27.40%
Cost of debt 4.40% - 7.50% 5.95%
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 0.96 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 11.40%
Tax rate 27.30% 27.50%
Debt/Equity ratio 1.32 1.32
Cost of debt 4.40% 7.50%
After-tax WACC 5.4% 8.0%
Selected WACC 6.7%