LB
L Brands Inc
Price:  
56.29 
USD
Volume:  
231,089.00
United States | Specialty Retail
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LB WACC - Weighted Average Cost of Capital

The WACC of L Brands Inc (LB) is 9.8%.

The Cost of Equity of L Brands Inc (LB) is 10.20%.
The Cost of Debt of L Brands Inc (LB) is 7.45%.

Range Selected
Cost of equity 8.90% - 11.50% 10.20%
Tax rate 1.40% - 1.80% 1.60%
Cost of debt 4.60% - 10.30% 7.45%
WACC 8.4% - 11.3% 9.8%
WACC

LB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.09 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.50%
Tax rate 1.40% 1.80%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.60% 10.30%
After-tax WACC 8.4% 11.3%
Selected WACC 9.8%