The WACC of Lemonade Inc (LMND) is 7.7%.
Range | Selected | |
Cost of equity | 6.60% - 8.80% | 7.70% |
Tax rate | 1.20% - 2.00% | 1.60% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.6% - 8.8% | 7.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.6 | 0.71 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.60% | 8.80% |
Tax rate | 1.20% | 2.00% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.6% | 8.8% |
Selected WACC | 7.7% | |