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Laureate Education, Inc. Common Stock (LAUR) — WACC Analysis

WACC Breakdown

Laureate Education, Inc. Common Stock (LAUR) has a weighted average cost of capital (WACC) of 8.1%. The cost of equity is 8.3%, derived from a beta of 0.59 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.4%. The capital structure is 96.1% equity and 3.9% debt.

Interpretation

A WACC of 8.1% is moderate, reflecting the market's balanced risk assessment of Laureate Education, Inc. Common Stock.

Investors can compare LAUR's WACC of 8.1% against industry peers to gauge its relative financing costs. A beta of 0.59 reflects the stock's volatility relative to the broader market.

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VALUATION

LAUR WACC: 8.14% for Laureate Education, Inc. Common Stock

Current inputs imply a 8.29% cost of equity and a 5.58% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Laureate Education, Inc. Common Stock Common Stock (LAUR) WACC Results
Weighted Average Cost of Capital
8.14%
Cost of Equity
8.29%
Risk-Free Rate5.22%
Beta0.59
Market Risk Premium4.23%
Cost of Debt
4.41%
Pre-Tax Cost of Debt5.58%
Tax Rate21.00%
Tax Shield1.17%
Capital Structure
Equity: 96.07%($5453.50M)
Debt: 3.93%($223.17M)
Equity Component
7.97%
96.07% × 8.29%
Debt Component
0.17%
3.93% × 4.41%

Laureate Education, Inc. Common Stock (LAUR) WACC in context

Laureate Education, Inc. Common Stock (LAUR) currently screens with an estimated WACC of 8.14%. That blends a 8.29% cost of equity, a 5.58% pre-tax cost of debt, and a 96.07% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What LAUR WACC implies

A 8.14% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates LAUR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.59 and equity accounts for 96.07% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.