LACR.PA WACC - Weighted Average Cost of Capital

The WACC of Lacroix Group SA (LACR.PA) is 6.9%.

The Cost of Equity of Lacroix Group SA (LACR.PA) is 18.10%.

The Cost of Debt of Lacroix Group SA (LACR.PA) is 5.00%.

	Range	Selected
Cost of equity	13.80% - 22.40%	18.10%
Tax rate	9.90% - 21.90%	15.90%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.3% - 7.5%	6.9%

WACC

LACR.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.86	2.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	22.40%

Tax rate	9.90%	21.90%
Debt/Equity ratio	4.19	4.19
Cost of debt	5.00%	5.00%

After-tax WACC	6.3%	7.5%


Selected WACC	6.9%

LACR.PA'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 LACR.PA:

cost_of_equity (18.10%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.86) + 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.