LAB.WA WACC - Weighted Average Cost of Capital

The WACC of Labo Print SA (LAB.WA) is 6.5%.

The Cost of Equity of Labo Print SA (LAB.WA) is 8.55%.

The Cost of Debt of Labo Print SA (LAB.WA) is 5.00%.

	Range	Selected
Cost of equity	7.80% - 9.30%	8.55%
Tax rate	17.70% - 18.30%	18.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.1% - 6.9%	6.5%

WACC

LAB.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.36	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	9.30%

Tax rate	17.70%	18.30%
Debt/Equity ratio	0.86	0.86
Cost of debt	5.00%	5.00%

After-tax WACC	6.1%	6.9%


Selected WACC	6.5%

LAB.WA'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 LAB.WA:

cost_of_equity (8.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.