Lotus Pharmaceuticals Inc (LTUS) WACC Analysis

As of June 14, 2025, Lotus Pharmaceuticals Inc (LTUS) carries a Weighted Average Cost of Capital (WACC) of 5.8%. WACC reflects the blended rate Lotus Pharmaceuticals Inc must pay to both equity and debt holders.

Within that, the cost of equity is 53.5%, the cost of debt is 5.0%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 10.78 – 16.18
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 31.94

What It Means for Investors

With a selected WACC of 5.8%, Lotus Pharmaceuticals Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.