LAD
Lithia Motors Inc
Price:  
370.36 
USD
Volume:  
281,937.00
United States | Specialty Retail
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

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 9.50%.
The Cost of Debt of Lithia Motors Inc (LAD) is 5.95%.

Range Selected
Cost of equity 8.20% - 10.80% 9.50%
Tax rate 27.30% - 27.50% 27.40%
Cost of debt 4.40% - 7.50% 5.95%
WACC 5.6% - 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 0.94 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.80%
Tax rate 27.30% 27.50%
Debt/Equity ratio 1.09 1.09
Cost of debt 4.40% 7.50%
After-tax WACC 5.6% 8.0%
Selected WACC 6.8%