LB
L Brands Inc
Price:  
30.13 
USD
Volume:  
225,472.00
United States | Specialty Retail
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LB WACC - Weighted Average Cost of Capital

The WACC of L Brands Inc (LB) is 7.8%.

The Cost of Equity of L Brands Inc (LB) is 8.90%.
The Cost of Debt of L Brands Inc (LB) is 5.55%.

Range Selected
Cost of equity 7.50% - 10.30% 8.90%
Tax rate 29.00% - 31.80% 30.40%
Cost of debt 4.30% - 6.80% 5.55%
WACC 6.5% - 9.1% 7.8%
WACC

LB WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.01 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.30%
Tax rate 29.00% 31.80%
Debt/Equity ratio 0.29 0.29
Cost of debt 4.30% 6.80%
After-tax WACC 6.5% 9.1%
Selected WACC 7.8%