Skip to content

Local Bounti Corporation (LOCL) — WACC Analysis

WACC Breakdown

Local Bounti Corporation (LOCL) has a weighted average cost of capital (WACC) of 4.0%. The cost of equity is 7.7%, derived from a beta of 0.37 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.0%. The capital structure is 4.7% equity and 95.3% debt.

Interpretation

A WACC of 4.0% suggests that the market views Local Bounti Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare LOCL's WACC of 4.0% against industry peers to gauge its relative financing costs. A beta of 0.37 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

LOCL WACC: 4.00% for Local Bounti Corporation

Current inputs imply a 7.67% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Local Bounti Corporation Common Stock (LOCL) WACC Results
Weighted Average Cost of Capital
4.00%
Cost of Equity
7.67%
Risk-Free Rate5.22%
Beta0.37
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 4.68%($24.08M)
Debt: 95.32%($490.81M)
Equity Component
0.36%
4.68% × 7.67%
Debt Component
1.91%
95.32% × 2.00%

Local Bounti Corporation (LOCL) WACC in context

Local Bounti Corporation (LOCL) currently screens with an estimated WACC of 4.00%. That blends a 7.67% cost of equity, a 2.00% pre-tax cost of debt, and a 4.68% 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 LOCL WACC implies

A 4.00% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates LOCL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.37 and equity accounts for 4.68% 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.