LE
Lands End Inc
Price:  
8.52 
USD
Volume:  
125,504.00
United States | Internet & Direct Marketing Retail
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LE WACC - Weighted Average Cost of Capital

The WACC of Lands End Inc (LE) is 11.2%.

The Cost of Equity of Lands End Inc (LE) is 12.80%.
The Cost of Debt of Lands End Inc (LE) is 11.30%.

Range Selected
Cost of equity 11.20% - 14.40% 12.80%
Tax rate 14.30% - 19.50% 16.90%
Cost of debt 9.10% - 13.50% 11.30%
WACC 9.6% - 12.7% 11.2%
WACC

LE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.59 1.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.20% 14.40%
Tax rate 14.30% 19.50%
Debt/Equity ratio 0.9 0.9
Cost of debt 9.10% 13.50%
After-tax WACC 9.6% 12.7%
Selected WACC 11.2%

LE'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 LE:

cost_of_equity (12.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.59) + 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.