LAUR.ST
Lauritz.com Group A/S
Price:  
0.24 
SEK
Volume:  
250,187
Denmark | Internet & Direct Marketing Retail

LAUR.ST WACC - Weighted Average Cost of Capital

The WACC of Lauritz.com Group A/S (LAUR.ST) is 6.1%.

The Cost of Equity of Lauritz.com Group A/S (LAUR.ST) is 11.45%.
The Cost of Debt of Lauritz.com Group A/S (LAUR.ST) is 6.75%.

RangeSelected
Cost of equity8.3% - 14.6%11.45%
Tax rate12.0% - 16.8%14.4%
Cost of debt6.5% - 7.0%6.75%
WACC5.9% - 6.4%6.1%
WACC

LAUR.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta1.131.82
Additional risk adjustments0.0%0.5%
Cost of equity8.3%14.6%
Tax rate12.0%16.8%
Debt/Equity ratio
15.4415.44
Cost of debt6.5%7.0%
After-tax WACC5.9%6.4%
Selected WACC6.1%

LAUR.ST WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.080.16
Relevered beta1.192.22
Adjusted relevered beta1.131.82

LAUR.ST'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 LAUR.ST:

cost_of_equity (11.45%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.13) + 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.