The WACC of Lauritz.com Group A/S (LAUR.ST) is 6.1%.
Range | Selected | |
Cost of equity | 8.3% - 14.6% | 11.45% |
Tax rate | 12.0% - 16.8% | 14.4% |
Cost of debt | 6.5% - 7.0% | 6.75% |
WACC | 5.9% - 6.4% | 6.1% |
Category | Low | High |
Long-term bond rate | 2.5% | 3.0% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 1.13 | 1.82 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.3% | 14.6% |
Tax rate | 12.0% | 16.8% |
Debt/Equity ratio | 15.44 | 15.44 |
Cost of debt | 6.5% | 7.0% |
After-tax WACC | 5.9% | 6.4% |
Selected WACC | 6.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
LAUR.ST | Lauritz.com Group A/S | 15.44 | 0.66 | 0.05 |
BTBB.DE | SLEEPZ AG | 0.4 | -0.47 | -0.35 |
BWNG.L | N Brown Group PLC | 1.63 | 0.27 | 0.11 |
ECF.DE | Mountain Alliance AG | 0 | 0.04 | 0.04 |
EPR.MI | Eprice SpA | 2.26 | 0.27 | 0.09 |
EVE.L | eve Sleep plc | 0.46 | 0.5 | 0.36 |
IVS.MI | IVS Group SA | 0.87 | 0.13 | 0.07 |
MYSL.L | MySale Group PLC | 0.11 | 1.53 | 1.4 |
PSAT.PA | Passat SA | 0.4 | 0.39 | 0.29 |
SRP.PA | SRP Groupe SA | 0.5 | 0.32 | 0.23 |
Low | High | |
Unlevered beta | 0.08 | 0.16 |
Relevered beta | 1.19 | 2.22 |
Adjusted relevered beta | 1.13 | 1.82 |
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.