LVVV
Livewire Ergogenics Inc
Price:  
0.00 
USD
Volume:  
6,354,780.00
United States | Personal Products
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LVVV WACC - Weighted Average Cost of Capital

The WACC of Livewire Ergogenics Inc (LVVV) is 3.7%.

The Cost of Equity of Livewire Ergogenics Inc (LVVV) is 5.85%.
The Cost of Debt of Livewire Ergogenics Inc (LVVV) is 4.25%.

Range Selected
Cost of equity 3.20% - 8.50% 5.85%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.0% - 4.5% 3.7%
WACC

LVVV WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta -0.25 0.57
Additional risk adjustments 0.5% 1.0%
Cost of equity 3.20% 8.50%
Tax rate 26.20% 27.00%
Debt/Equity ratio 3.47 3.47
Cost of debt 4.00% 4.50%
After-tax WACC 3.0% 4.5%
Selected WACC 3.7%

LVVV's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for LVVV:

cost_of_equity (5.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-0.25) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.