LPI
Laredo Petroleum Inc
Price:  
48.09 
USD
Volume:  
677,770.00
United States | Oil, Gas & Consumable Fuels
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LPI WACC - Weighted Average Cost of Capital

The WACC of Laredo Petroleum Inc (LPI) is 9.7%.

The Cost of Equity of Laredo Petroleum Inc (LPI) is 13.60%.
The Cost of Debt of Laredo Petroleum Inc (LPI) is 6.95%.

Range Selected
Cost of equity 11.00% - 16.20% 13.60%
Tax rate 0.80% - 1.20% 1.00%
Cost of debt 5.30% - 8.60% 6.95%
WACC 7.7% - 11.8% 9.7%
WACC

LPI WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.59 2.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 16.20%
Tax rate 0.80% 1.20%
Debt/Equity ratio 1.38 1.38
Cost of debt 5.30% 8.60%
After-tax WACC 7.7% 11.8%
Selected WACC 9.7%