LRE.L
Lancashire Holdings Ltd
Price:  
670.00 
GBP
Volume:  
296,170.00
Bermuda | Insurance
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LRE.L WACC - Weighted Average Cost of Capital

The WACC of Lancashire Holdings Ltd (LRE.L) is 8.5%.

The Cost of Equity of Lancashire Holdings Ltd (LRE.L) is 9.35%.
The Cost of Debt of Lancashire Holdings Ltd (LRE.L) is 5.00%.

Range Selected
Cost of equity 7.80% - 10.90% 9.35%
Tax rate 1.90% - 2.50% 2.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.3% - 9.8% 8.5%
WACC

LRE.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.64 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.90%
Tax rate 1.90% 2.50%
Debt/Equity ratio 0.23 0.23
Cost of debt 5.00% 5.00%
After-tax WACC 7.3% 9.8%
Selected WACC 8.5%