LEE
Lee Enterprises Inc
Price:  
6.40 
USD
Volume:  
12,672.00
United States | Media
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LEE WACC - Weighted Average Cost of Capital

The WACC of Lee Enterprises Inc (LEE) is 9.4%.

The Cost of Equity of Lee Enterprises Inc (LEE) is 9.75%.
The Cost of Debt of Lee Enterprises Inc (LEE) is 16.35%.

Range Selected
Cost of equity 7.60% - 11.90% 9.75%
Tax rate 23.80% - 49.60% 36.70%
Cost of debt 8.80% - 23.90% 16.35%
WACC 6.8% - 12.0% 9.4%
WACC

LEE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.81 1.26
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 11.90%
Tax rate 23.80% 49.60%
Debt/Equity ratio 11.42 11.42
Cost of debt 8.80% 23.90%
After-tax WACC 6.8% 12.0%
Selected WACC 9.4%

LEE'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 LEE:

cost_of_equity (9.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.81) + 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.