Question 1

What is Liberty Broadband Corporation Class A's WACC?

Accepted Answer

Liberty Broadband Corporation Class A (LBRDA) has a Weighted Average Cost of Capital (WACC) of 6.66%. This is calculated using a Cost of Equity of 8.26% (via CAPM with a beta of 0.84) and a pre-tax Cost of Debt of 3.66%, with an equity weight of 65.24% in the capital structure.

Question 2

Is Liberty Broadband Corporation Class A's WACC high or low?

Accepted Answer

Liberty Broadband Corporation Class A's WACC of 6.66% 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 Liberty Broadband Corporation Class A's WACC calculated?

Accepted Answer

Liberty Broadband Corporation Class A's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.26% is derived from the CAPM model using a beta of 0.84. The pre-tax Cost of Debt (Rd) is 3.66%. The capital structure is 65.24% equity and 34.76% debt.

Liberty Broadband Corporation Class A (LBRDA) — WACC 分析

WACC 构成

解读

Liberty Broadband Corporation Class A（LBRDA）WACC：6.66%

WACC计算器

Liberty Broadband Corporation Class A（LBRDA） WACC 解读

LBRDA 公司分析

LBRDA DCF 估值

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