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LZ Technology Holdings Limited Class B Ordinary Shares (LZMH) — WACC Analysis

WACC Breakdown

LZ Technology Holdings Limited Class B Ordinary Shares (LZMH) has a weighted average cost of capital (WACC) of 6.0%. The cost of equity is 8.9%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.0%. The capital structure is 57.8% equity and 42.2% debt.

Interpretation

A WACC of 6.0% suggests that the market views LZ Technology Holdings Limited Class B Ordinary Shares as relatively low-risk, with a lower cost of financing.

Investors can compare LZMH's WACC of 6.0% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

LZMH WACC: 5.99% for LZ Technology Holdings Limited Class B Ordinary Shares

Current inputs imply a 8.90% 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
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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

LZ Technology Holdings Limited Class B Ordinary Shares Common Stock (LZMH) WACC Results
Weighted Average Cost of Capital
5.99%
Cost of Equity
8.90%
Risk-Free Rate4.67%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 57.85%($11.31M)
Debt: 42.15%($8.24M)
Equity Component
5.15%
57.85% × 8.90%
Debt Component
0.84%
42.15% × 2.00%

LZ Technology Holdings Limited Class B Ordinary Shares (LZMH) WACC in context

LZ Technology Holdings Limited Class B Ordinary Shares (LZMH) currently screens with an estimated WACC of 5.99%. That blends a 8.90% cost of equity, a 2.00% pre-tax cost of debt, and a 57.85% 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 LZMH WACC implies

A 5.99% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates LZMH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 57.85% 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.