LBTL.TA WACC - Weighted Average Cost of Capital

The WACC of A Libental Holdings Ltd (LBTL.TA) is 7.1%.

The Cost of Equity of A Libental Holdings Ltd (LBTL.TA) is 11.65%.

The Cost of Debt of A Libental Holdings Ltd (LBTL.TA) is 6.15%.

	Range	Selected
Cost of equity	7.90% - 15.40%	11.65%
Tax rate	16.20% - 19.80%	18.00%
Cost of debt	5.30% - 7.00%	6.15%
WACC	5.5% - 8.7%	7.1%

WACC

LBTL.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.5	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	15.40%

Tax rate	16.20%	19.80%
Debt/Equity ratio	2.18	2.18
Cost of debt	5.30%	7.00%

After-tax WACC	5.5%	8.7%


Selected WACC	7.1%

LBTL.TA'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 LBTL.TA:

cost_of_equity (11.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.