LAS.L WACC - Weighted Average Cost of Capital

The WACC of London & Associated Properties PLC (LAS.L) is 6.9%.

The Cost of Equity of London & Associated Properties PLC (LAS.L) is 6.95%.

The Cost of Debt of London & Associated Properties PLC (LAS.L) is 8.20%.

	Range	Selected
Cost of equity	6.00% - 7.90%	6.95%
Tax rate	10.70% - 20.90%	15.80%
Cost of debt	7.20% - 9.20%	8.20%
WACC	6.3% - 7.4%	6.9%

WACC

LAS.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.33	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	7.90%

Tax rate	10.70%	20.90%
Debt/Equity ratio	3.46	3.46
Cost of debt	7.20%	9.20%

After-tax WACC	6.3%	7.4%


Selected WACC	6.9%

LAS.L'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 LAS.L:

cost_of_equity (6.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.