LPLA
LPL Financial Holdings Inc
Price:  
221.99 
USD
Volume:  
922,002.00
United States | Capital Markets
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LPLA WACC - Weighted Average Cost of Capital

The WACC of LPL Financial Holdings Inc (LPLA) is 8.7%.

The Cost of Equity of LPL Financial Holdings Inc (LPLA) is 9.50%.
The Cost of Debt of LPL Financial Holdings Inc (LPLA) is 5.00%.

Range Selected
Cost of equity 8.10% - 10.90% 9.50%
Tax rate 24.30% - 24.50% 24.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.4% - 9.9% 8.7%
WACC

LPLA WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 0.78 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.90%
Tax rate 24.30% 24.50%
Debt/Equity ratio 0.17 0.17
Cost of debt 5.00% 5.00%
After-tax WACC 7.4% 9.9%
Selected WACC 8.7%