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 7.78%. This is calculated using a Cost of Equity of 8.24% (via CAPM with a beta of 0.86) and a pre-tax Cost of Debt of 6.30%, with an equity weight of 76.67% 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 7.78% 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 8.24% is derived from the CAPM model using a beta of 0.86. The pre-tax Cost of Debt (Rd) is 6.30%. The capital structure is 76.67% equity and 23.33% debt.

Liberty Broadband Corporation Class A (LBRDA) — WACC 分析

WACC 构成

解读

Liberty Broadband Corporation Class A（LBRDA）WACC：7.78%

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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