Question 1

What is Legence Corp. Class A Common stock's WACC?

Accepted Answer

Legence Corp. Class A Common stock (LGN) has a Weighted Average Cost of Capital (WACC) of 9.31%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 12.18%, with an equity weight of 86.27% in the capital structure.

Question 2

Is Legence Corp. Class A Common stock's WACC high or low?

Accepted Answer

Legence Corp. Class A Common stock's WACC of 9.31% falls within the typical 8-12% range for mid-cap growth companies. 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 Legence Corp. Class A Common stock's WACC calculated?

Accepted Answer

Legence Corp. Class A Common stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 12.18%. The capital structure is 86.27% equity and 13.73% debt.

Legence Corp. Class A Common stock (LGN) — WACC 分析

WACC 构成

解读

Legence Corp. Class A Common stock（LGN）WACC：9.31%

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Legence Corp. Class A Common stock（LGN） WACC 解读

LGN 公司分析

LGN DCF 估值

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