LPLA
LPL Financial Holdings Inc
Price:  
211.43 
USD
Volume:  
801,608.00
United States | Capital Markets
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LPLA WACC - Weighted Average Cost of Capital

The WACC of LPL Financial Holdings Inc (LPLA) is 7.4%.

The Cost of Equity of LPL Financial Holdings Inc (LPLA) is 8.25%.
The Cost of Debt of LPL Financial Holdings Inc (LPLA) is 4.80%.

Range Selected
Cost of equity 7.00% - 9.50% 8.25%
Tax rate 24.30% - 24.50% 24.40%
Cost of debt 4.70% - 4.90% 4.80%
WACC 6.3% - 8.5% 7.4%
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 0.67 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.50%
Tax rate 24.30% 24.50%
Debt/Equity ratio 0.23 0.23
Cost of debt 4.70% 4.90%
After-tax WACC 6.3% 8.5%
Selected WACC 7.4%