LB
L Brands Inc
Price:  
63.03 
USD
Volume:  
555,667.00
United States | Specialty Retail
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LB WACC - Weighted Average Cost of Capital

The WACC of L Brands Inc (LB) is 9.3%.

The Cost of Equity of L Brands Inc (LB) is 9.35%.
The Cost of Debt of L Brands Inc (LB) is 8.65%.

Range Selected
Cost of equity 8.00% - 10.70% 9.35%
Tax rate 1.40% - 1.80% 1.60%
Cost of debt 7.00% - 10.30% 8.65%
WACC 7.9% - 10.7% 9.3%
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 0.89 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.70%
Tax rate 1.40% 1.80%
Debt/Equity ratio 0.12 0.12
Cost of debt 7.00% 10.30%
After-tax WACC 7.9% 10.7%
Selected WACC 9.3%