Question 1

What is Lake Shore Bancorp, Inc.'s WACC?

Accepted Answer

Lake Shore Bancorp, Inc. (LSBK) has a Weighted Average Cost of Capital (WACC) of 6.31%. This is calculated using a Cost of Equity of 6.31% (via CAPM with a beta of 0.16) and a pre-tax Cost of Debt of 5.00%, with an equity weight of 100.00% in the capital structure.

Question 2

Is Lake Shore Bancorp, Inc.'s WACC high or low?

Accepted Answer

Lake Shore Bancorp, Inc.'s WACC of 6.31% 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 Lake Shore Bancorp, Inc.'s WACC calculated?

Accepted Answer

Lake Shore Bancorp, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.31% is derived from the CAPM model using a beta of 0.16. The pre-tax Cost of Debt (Rd) is 5.00%. The capital structure is 100.00% equity and 0.00% debt.

Lake Shore Bancorp, Inc. (LSBK) — WACC 分析

WACC 构成

解读

Lake Shore Bancorp, Inc.（LSBK）WACC：6.31%

WACC计算器

Lake Shore Bancorp, Inc.（LSBK） WACC 解读

LSBK 公司分析

LSBK DCF 估值

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