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Lumen Technologies, Inc. (LUMN) — WACC Analysis

WACC Breakdown

Lumen Technologies, Inc. (LUMN) has a weighted average cost of capital (WACC) of 8.8%. The cost of equity is 10.8%, derived from a beta of 1.56 and a risk-free rate of 5.0%. The after-tax cost of debt is 7.8%. The capital structure is 35.4% equity and 64.6% debt.

Interpretation

A WACC of 8.8% is moderate, reflecting the market's balanced risk assessment of Lumen Technologies, Inc..

Investors can compare LUMN's WACC of 8.8% against industry peers to gauge its relative financing costs. A beta of 1.56 reflects the stock's volatility relative to the broader market.

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VALUATION

LUMN WACC: 8.83% for Lumen Technologies, Inc.

Current inputs imply a 10.77% cost of equity and a 7.76% 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

Lumen Technologies, Inc. Common Stock (LUMN) WACC Results
Weighted Average Cost of Capital
8.83%
Cost of Equity
10.77%
Risk-Free Rate4.96%
Beta1.56
Market Risk Premium4.23%
Cost of Debt
7.76%
Pre-Tax Cost of Debt7.76%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 35.45%($7251.06M)
Debt: 64.55%($13.21B)
Equity Component
3.82%
35.45% × 10.77%
Debt Component
5.01%
64.55% × 7.76%

Lumen Technologies, Inc. (LUMN) WACC in context

Lumen Technologies, Inc. (LUMN) currently screens with an estimated WACC of 8.83%. That blends a 10.77% cost of equity, a 7.76% pre-tax cost of debt, and a 35.45% 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 LUMN WACC implies

A 8.83% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates LUMN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.56 and equity accounts for 35.45% 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.