LAZY WACC - Weighted Average Cost of Capital

The WACC of Lazydays Holdings Inc (LAZY) is 7.6%.

The Cost of Equity of Lazydays Holdings Inc (LAZY) is 19.80%.

The Cost of Debt of Lazydays Holdings Inc (LAZY) is 7.20%.

	Range	Selected
Cost of equity	15.80% - 23.80%	19.80%
Tax rate	24.30% - 32.00%	28.15%
Cost of debt	5.90% - 8.50%	7.20%
WACC	6.4% - 8.9%	7.6%

WACC

LAZY WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	4.6%	5.6%
Adjusted beta	2.52	3.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.80%	23.80%

Tax rate	24.30%	32.00%
Debt/Equity ratio	4.84	4.84
Cost of debt	5.90%	8.50%

After-tax WACC	6.4%	8.9%


Selected WACC	7.6%

LAZY's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for LAZY:

cost_of_equity (19.80%) = risk_free_rate (4.45%) + equity_risk_premium (5.10%) * adjusted_beta (2.52) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.