LMND
Lemonade Inc
Price:  
34.97 
USD
Volume:  
1,613,086.00
United States | Insurance
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LMND WACC - Weighted Average Cost of Capital

The WACC of Lemonade Inc (LMND) is 8.2%.

The Cost of Equity of Lemonade Inc (LMND) is 8.30%.
The Cost of Debt of Lemonade Inc (LMND) is 5.00%.

Range Selected
Cost of equity 7.10% - 9.50% 8.30%
Tax rate 1.20% - 2.00% 1.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.0% - 9.4% 8.2%
WACC

LMND WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.7 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.50%
Tax rate 1.20% 2.00%
Debt/Equity ratio 0.03 0.03
Cost of debt 5.00% 5.00%
After-tax WACC 7.0% 9.4%
Selected WACC 8.2%