Question 1

What is LendingTree, Inc.'s WACC?

Accepted Answer

LendingTree, Inc. (TREE) has a Weighted Average Cost of Capital (WACC) of 6.56%. This is calculated using a Cost of Equity of 10.90% (via CAPM with a beta of 1.84) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 53.39% in the capital structure.

Question 2

Is LendingTree, Inc.'s WACC high or low?

Accepted Answer

LendingTree, Inc.'s WACC of 6.56% 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 LendingTree, Inc.'s WACC calculated?

Accepted Answer

LendingTree, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 10.90% is derived from the CAPM model using a beta of 1.84. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 53.39% equity and 46.61% debt.

LendingTree, Inc. (TREE) — WACC 分析

WACC 构成

解读

LendingTree, Inc.（TREE）WACC：6.56%

WACC计算器

LendingTree, Inc.（TREE） WACC 解读

TREE 公司分析

TREE DCF 估值

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