LIND
Lindblad Expeditions Holdings Inc
Price:  
10.25 
USD
Volume:  
617,139.00
United States | Hotels, Restaurants & Leisure
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LIND WACC - Weighted Average Cost of Capital

The WACC of Lindblad Expeditions Holdings Inc (LIND) is 11.7%.

The Cost of Equity of Lindblad Expeditions Holdings Inc (LIND) is 9.10%.
The Cost of Debt of Lindblad Expeditions Holdings Inc (LIND) is 15.00%.

Range Selected
Cost of equity 6.70% - 11.50% 9.10%
Tax rate 7.40% - 8.60% 8.00%
Cost of debt 6.10% - 23.90% 15.00%
WACC 6.1% - 17.2% 11.7%
WACC

LIND WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.62 1.19
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 11.50%
Tax rate 7.40% 8.60%
Debt/Equity ratio 1.25 1.25
Cost of debt 6.10% 23.90%
After-tax WACC 6.1% 17.2%
Selected WACC 11.7%

LIND'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 LIND:

cost_of_equity (9.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.62) + 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.