LOUD Technologies Inc (LTEC) WACC Analysis

As of June 17, 2025, LOUD Technologies Inc (LTEC) carries a Weighted Average Cost of Capital (WACC) of 19.2%. WACC reflects the blended rate LOUD Technologies Inc must pay to both equity and debt holders.

Within that, the cost of equity is 332134.3%, the cost of debt is 12.7%, and the effective tax rate is 4.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 72202.26 – 81741.13
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 209209.88

What It Means for Investors

With a selected WACC of 19.2%, LOUD Technologies Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.