Question 1

What is The Lovesac Company Common Stock's WACC?

Accepted Answer

The Lovesac Company Common Stock (LOVE) has a Weighted Average Cost of Capital (WACC) of 12.08%. This is calculated using a Cost of Equity of 12.08% (via CAPM with a beta of 1.84) and a pre-tax Cost of Debt of 5.00%, with an equity weight of 100.00% in the capital structure.

Question 2

Is The Lovesac Company Common Stock's WACC high or low?

Accepted Answer

The Lovesac Company Common Stock's WACC of 12.08% is above the typical range, indicating higher perceived risk and cost of capital. 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 The Lovesac Company Common Stock's WACC calculated?

Accepted Answer

The Lovesac Company Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 12.08% is derived from the CAPM model using a beta of 1.84. The pre-tax Cost of Debt (Rd) is 5.00%. The capital structure is 100.00% equity and 0.00% debt.

The Lovesac Company Common Stock (LOVE) — WACC 分析

WACC 构成

解读

The Lovesac Company Common Stock（LOVE）WACC：12.08%

WACC计算器

The Lovesac Company Common Stock（LOVE） WACC 解读

LOVE 公司分析

LOVE DCF 估值

继续做同行对比