Question 1

What is Lincoln National Corp.'s WACC?

Accepted Answer

Lincoln National Corp. (LNC) has a Weighted Average Cost of Capital (WACC) of 6.85%. This is calculated using a Cost of Equity of 10.18% (via CAPM with a beta of 1.45) and a pre-tax Cost of Debt of 3.31%, with an equity weight of 55.98% in the capital structure.

Question 2

Is Lincoln National Corp.'s WACC high or low?

Accepted Answer

Lincoln National Corp.'s WACC of 6.85% 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 Lincoln National Corp.'s WACC calculated?

Accepted Answer

Lincoln National Corp.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 10.18% is derived from the CAPM model using a beta of 1.45. The pre-tax Cost of Debt (Rd) is 3.31%. The capital structure is 55.98% equity and 44.02% debt.

Lincoln National Corp. (LNC) — WACC 分析

WACC 构成

解读

Lincoln National Corp.（LNC）WACC：6.85%

WACC计算器

Lincoln National Corp.（LNC） WACC 解读

LNC 公司分析

LNC DCF 估值

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