Question 1

What is Lennar Corporation Class A's WACC?

Accepted Answer

Lennar Corporation Class A (LEN) has a Weighted Average Cost of Capital (WACC) of 7.21%. This is calculated using a Cost of Equity of 8.66% (via CAPM with a beta of 1.04) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 79.55% in the capital structure.

Question 2

Is Lennar Corporation Class A's WACC high or low?

Accepted Answer

Lennar Corporation Class A's WACC of 7.21% 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 Lennar Corporation Class A's WACC calculated?

Accepted Answer

Lennar 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 8.66% is derived from the CAPM model using a beta of 1.04. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 79.55% equity and 20.45% debt.

Lennar Corporation Class A (LEN) — WACC 分析

WACC 构成

解读

Lennar Corporation Class A（LEN）WACC：7.21%

WACC计算器

Lennar Corporation Class A（LEN） WACC 解读

LEN 公司分析

LEN DCF 估值

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