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Liberty Energy Inc. (LBRT) — WACC Analysis

WACC Breakdown

Liberty Energy Inc. (LBRT) has a weighted average cost of capital (WACC) of 7.5%. The cost of equity is 9.8%, derived from a beta of 1.20 and a risk-free rate of 5.0%. The after-tax cost of debt is 1.9%. The capital structure is 71.2% equity and 28.8% debt.

Interpretation

A WACC of 7.5% suggests that the market views Liberty Energy Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare LBRT's WACC of 7.5% against industry peers to gauge its relative financing costs. A beta of 1.20 reflects the stock's volatility relative to the broader market.

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VALUATION

LBRT WACC: 7.50% for Liberty Energy Inc.

Current inputs imply a 9.75% cost of equity and a 2.45% 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

Liberty Energy Inc. Common Stock (LBRT) WACC Results
Weighted Average Cost of Capital
7.50%
Cost of Equity
9.75%
Risk-Free Rate4.96%
Beta1.20
Market Risk Premium4.23%
Cost of Debt
1.94%
Pre-Tax Cost of Debt2.45%
Tax Rate21.00%
Tax Shield0.52%
Capital Structure
Equity: 71.16%($3187.13M)
Debt: 28.84%($1291.85M)
Equity Component
6.94%
71.16% × 9.75%
Debt Component
0.56%
28.84% × 1.94%

Liberty Energy Inc. (LBRT) WACC in context

Liberty Energy Inc. (LBRT) currently screens with an estimated WACC of 7.50%. That blends a 9.75% cost of equity, a 2.45% pre-tax cost of debt, and a 71.16% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What LBRT WACC implies

A 7.50% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates LBRT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.20 and equity accounts for 71.16% 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.