Question 1

What is Life Time Group Holdings, Inc.'s WACC?

Accepted Answer

Life Time Group Holdings, Inc. (LTH) has a Weighted Average Cost of Capital (WACC) of 5.03%. This is calculated using a Cost of Equity of 5.88% (via CAPM with a beta of 0.06) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 80.23% in the capital structure.

Question 2

Is Life Time Group Holdings, Inc.'s WACC high or low?

Accepted Answer

Life Time Group Holdings, Inc.'s WACC of 5.03% 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 Life Time Group Holdings, Inc.'s WACC calculated?

Accepted Answer

Life Time Group Holdings, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 5.88% is derived from the CAPM model using a beta of 0.06. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 80.23% equity and 19.77% debt.

Life Time Group Holdings, Inc. (LTH) — WACC 分析

WACC 构成

解读

Life Time Group Holdings, Inc.（LTH）WACC：5.03%

WACC计算器

Life Time Group Holdings, Inc.（LTH） WACC 解读

LTH 公司分析

LTH DCF 估值

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