LPLA
LPL Financial Holdings Inc
Price:  
361.89 
USD
Volume:  
437,042.00
United States | Capital Markets
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LPLA WACC - Weighted Average Cost of Capital

The WACC of LPL Financial Holdings Inc (LPLA) is 8.6%.

The Cost of Equity of LPL Financial Holdings Inc (LPLA) is 9.25%.
The Cost of Debt of LPL Financial Holdings Inc (LPLA) is 4.80%.

Range Selected
Cost of equity 7.80% - 10.70% 9.25%
Tax rate 24.30% - 24.50% 24.40%
Cost of debt 4.70% - 4.90% 4.80%
WACC 7.3% - 9.9% 8.6%
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 0.86 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.70%
Tax rate 24.30% 24.50%
Debt/Equity ratio 0.14 0.14
Cost of debt 4.70% 4.90%
After-tax WACC 7.3% 9.9%
Selected WACC 8.6%