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%.

	Range	Selected
Cost of equity	8.30% - 14.60%	11.45%
Tax rate	12.00% - 16.80%	14.40%
Cost of debt	6.50% - 7.00%	6.75%
WACC	5.9% - 6.4%	6.1%

WACC

LAUR.ST WACC calculation

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	8.30%	14.60%

Tax rate	12.00%	16.80%
Debt/Equity ratio	15.44	15.44
Cost of debt	6.50%	7.00%

After-tax WACC	5.9%	6.4%


Selected WACC	6.1%

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.