BOLS.AS WACC - Weighted Average Cost of Capital

The WACC of Lucas Bols Amsterdam BV (BOLS.AS) is 5.2%.

The Cost of Equity of Lucas Bols Amsterdam BV (BOLS.AS) is 5.70%.

The Cost of Debt of Lucas Bols Amsterdam BV (BOLS.AS) is 4.85%.

	Range	Selected
Cost of equity	4.90% - 6.50%	5.70%
Tax rate	33.40% - 34.80%	34.10%
Cost of debt	4.00% - 5.70%	4.85%
WACC	4.4% - 5.9%	5.2%

WACC

BOLS.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.46	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	6.50%

Tax rate	33.40%	34.80%
Debt/Equity ratio	0.29	0.29
Cost of debt	4.00%	5.70%

After-tax WACC	4.4%	5.9%


Selected WACC	5.2%

BOLS.AS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for BOLS.AS:

cost_of_equity (5.70%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.