LPLA
LPL Financial Holdings Inc
Price:  
379.99 
USD
Volume:  
676,408.00
United States | Capital Markets
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LPLA WACC - Weighted Average Cost of Capital

The WACC of LPL Financial Holdings Inc (LPLA) is 8.5%.

The Cost of Equity of LPL Financial Holdings Inc (LPLA) is 9.50%.
The Cost of Debt of LPL Financial Holdings Inc (LPLA) is 4.55%.

Range Selected
Cost of equity 7.90% - 11.10% 9.50%
Tax rate 24.00% - 24.20% 24.10%
Cost of debt 4.30% - 4.80% 4.55%
WACC 7.2% - 9.8% 8.5%
WACC

LPLA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.88 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 11.10%
Tax rate 24.00% 24.20%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.30% 4.80%
After-tax WACC 7.2% 9.8%
Selected WACC 8.5%