LVVV
Livewire Ergogenics Inc
Price:  
USD
Volume:  
705,390
United States | Personal Products

LVVV WACC - Weighted Average Cost of Capital

The WACC of Livewire Ergogenics Inc (LVVV) is 3.6%.

The Cost of Equity of Livewire Ergogenics Inc (LVVV) is 5.25%.
The Cost of Debt of Livewire Ergogenics Inc (LVVV) is 4.25%.

RangeSelected
Cost of equity3.6% - 6.9%5.25%
Tax rate26.2% - 27.0%26.6%
Cost of debt4.0% - 4.5%4.25%
WACC3.1% - 4.2%3.6%
WACC

LVVV WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta-0.060.36
Additional risk adjustments0.0%0.5%
Cost of equity3.6%6.9%
Tax rate26.2%27.0%
Debt/Equity ratio
3.053.05
Cost of debt4.0%4.5%
After-tax WACC3.1%4.2%
Selected WACC3.6%

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 (5.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-0.06) + risk_adjustments (0.25%)

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