LMND
Lemonade Inc
Price:  
42.55 
USD
Volume:  
1,535,597.00
United States | Insurance
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LMND WACC - Weighted Average Cost of Capital

The WACC of Lemonade Inc (LMND) is 7.7%.

The Cost of Equity of Lemonade Inc (LMND) is 7.70%.
The Cost of Debt of Lemonade Inc (LMND) is 5.00%.

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%
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 0.6 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%