Question 1

What is Loews Corporation's WACC?

Accepted Answer

Loews Corporation (L) has a Weighted Average Cost of Capital (WACC) of 6.54%. This is calculated using a Cost of Equity of 7.64% (via CAPM with a beta of 0.63) and a pre-tax Cost of Debt of 4.98%, with an equity weight of 70.46% in the capital structure.

Question 2

Is Loews Corporation's WACC high or low?

Accepted Answer

Loews Corporation's WACC of 6.54% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Loews Corporation's WACC calculated?

Accepted Answer

Loews Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.64% is derived from the CAPM model using a beta of 0.63. The pre-tax Cost of Debt (Rd) is 4.98%. The capital structure is 70.46% equity and 29.54% debt.

Loews Corporation (L) — WACC 分析

WACC 构成

解读

Loews Corporation（L）WACC：6.54%

WACC计算器

Loews Corporation（L） WACC 解读

L 公司分析

L DCF 估值

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