Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Travel+Leisure CoLTS:0M1K 82 WACC % is 3.51% as of Jul. 24, 2026, which is 46% below its 10-year median of 6.53. GuruFocus rates LTS:0M1K with a GF Score™ of 82/100 and a GF Value™ of $45.20. The stock has 9 warning signs investors should review. Among 865 Travel & Leisure companies, Travel+Leisure Co ranks better than 63.82% on this metric.
As of today (2026-07-24), Travel+Leisure Co's weighted average cost of capital is 3.51%%. Travel+Leisure Co's ROIC % is 6.96% (calculated using TTM income statement data).
Travel+Leisure Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
For a comprehensive WACC calculation, please access the WACC Calculator.
Travel+Leisure Co (LTS:0M1K) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Travel+Leisure Co's weighted average cost of capital is 3.51%%. Travel+Leisure Co's ROIC % is 6.96% (calculated using TTM income statement data).
Travel+Leisure Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Travel+Leisure Co WACC % Historical Data
* Premium members only.
The historical data trend for Travel+Leisure Co's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Travel Services subindustry, Travel+Leisure Co's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Travel+Leisure Co WACC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Travel+Leisure Co's WACC % distribution charts can be found below:
* The bar in red indicates where Travel+Leisure Co's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Travel+Leisure Co's market capitalization (E) is $4501.169 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Jun. 2026, Travel+Leisure Co's latest one-year quarterly average Book Value of Debt (D) is $5672.6 Mil.
a) weight of equity = E / (E + D) = 4501.169 / (4501.169 + 5672.6) = 0.4424
b) weight of debt = D / (E + D) = 5672.6 / (4501.169 + 5672.6) = 0.5576
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.681%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Travel+Leisure Co's beta is -0.0437.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.681% + -0.0437 * 6% = 4.4188%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Jun. 2026, Travel+Leisure Co's interest expense (positive number) was $232 Mil. Its total Book Value of Debt (D) is $5672.6 Mil.
Cost of Debt = 232 / 5672.6 = 4.0898%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 110 / 348 = 31.61%.
Travel+Leisure Co's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.4424
*
4.4188%
+
0.5576
*
4.0898%
*
(1 - 31.61%)
=
3.51%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Travel+Leisure Co (LTS:0M1K) has a WACC % of 3.51% as of Jul. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Travel+Leisure Co and its competitors. This is 46% below median its historical median of 6.53. Over the past decade, Travel+Leisure Co's WACC % has ranged from 5.06 to 7.79. According to the industry distribution chart, Travel+Leisure Co ranks #313 out of 865 companies in the Travel & Leisure industry, placing it in the top 36.2%.
Is Travel+Leisure Co's WACC % too high?
Travel+Leisure Co's current WACC % of 3.51% is 46% below median its 10-year median of 6.53. Over the past 10 years, this metric has ranged from a low of 5.06 to a high of 7.79. The Travel & Leisure industry median WACC % is 7.73. Travel+Leisure Co's value of 3.51% is 54.6% below this industry median. Based on the distribution chart, Travel+Leisure Co ranks #313 out of 865 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Travel+Leisure Co has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Travel+Leisure Co's WACC % compare to GBTG and MMYT?
According to the Travel & Leisure industry distribution chart, Travel+Leisure Co ranks #313 out of 865 companies for WACC %. This puts Travel+Leisure Co in the upper half of its industry. The industry median WACC % is 7.73. Travel+Leisure Co's value of 3.51% is 54.6% below this benchmark. Historically, Travel+Leisure Co's own WACC % has ranged from 5.06 to 7.79 over the past decade. While the company's 10-year median is 6.53 vs. the industry median of 7.73, Travel+Leisure Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Travel & Leisure company?
The median WACC % among Travel & Leisure companies is 7.73, based on 865 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Travel+Leisure Co's current WACC % of 3.51% is 54.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Travel+Leisure Co and its competitors. For the Travel & Leisure industry, the median WACC % is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Travel+Leisure Co's current WACC % is 3.51%, which is 46% below median its own 10-year median of 6.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Travel+Leisure Co stock overvalued right now?
Travel+Leisure Co (LTS:0M1K) has a current WACC % of 3.51%. The stock's GF Value™ is $45.20, compared to a current price of $58.15 — trading 28.7% above its estimated fair value. The current WACC % is 3.51%, which is 46% below median its 10-year median of 6.53 and 54.6% below the Travel & Leisure industry median of 7.73. Travel+Leisure Co's overall GF Score™ is 82/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Travel+Leisure Co (LTS:0M1K), the current WACC % is 3.51% as of Jul. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Travel+Leisure Co (LTS:0M1K) Overvalued in 2026?
Based on GuruFocus' analysis, Travel+Leisure Co stock appears to be overvalued.
The current stock price of $58.15 is trading 28.7% above its estimated GF Value™ of $45.20.
Key valuation signals for LTS:0M1K:
WACC %: 3.51% (46% below median its 10-year median of 6.53)
GF Value™: $45.20 vs. price of $58.15 (28.7% above fair value)
Industry Position: 54.6% below the Travel & Leisure median (#313 of 865)
No single metric tells the full story. See the LTS:0M1K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Travel+Leisure Co is a membership and leisure travel company. It provides hospitality services and travel products. The company operates in the segments of Vacation Ownership, which is the key revenue-driving segment, develops, markets and sells vacation ownership interests (VOIs) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts, and Travel and Membership which operates a variety of travel businesses, including two vacation exchange brands, Vacation Ownership and Travel and Membership The majority of the revenue is earned from the United States.
82GF Score
Get the complete analysis for LTS:0M1K
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0M1K has been successfully added to your 
