Question 1

What is LPL Financial Holdings Inc.'s WACC?

Accepted Answer

LPL Financial Holdings Inc. (LPLA) has a Weighted Average Cost of Capital (WACC) of 7.68%. This is calculated using a Cost of Equity of 8.59% (via CAPM with a beta of 1.03) and a pre-tax Cost of Debt of 4.99%, with an equity weight of 80.54% in the capital structure.

Question 2

Is LPL Financial Holdings Inc.'s WACC high or low?

Accepted Answer

LPL Financial Holdings Inc.'s WACC of 7.68% 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 LPL Financial Holdings Inc.'s WACC calculated?

Accepted Answer

LPL Financial Holdings Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.59% is derived from the CAPM model using a beta of 1.03. The pre-tax Cost of Debt (Rd) is 4.99%. The capital structure is 80.54% equity and 19.46% debt.

LPL Financial Holdings Inc. (LPLA) — WACC 分析

WACC 构成

解读

LPL Financial Holdings Inc.（LPLA）WACC：7.68%

WACC计算器

LPL Financial Holdings Inc.（LPLA） WACC 解读

LPLA 公司分析

LPLA DCF 估值

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