LCLEAN.ST WACC - Weighted Average Cost of Capital

The WACC of Lifeclean International AB (publ) (LCLEAN.ST) is 6.8%.

The Cost of Equity of Lifeclean International AB (publ) (LCLEAN.ST) is 6.20%.

The Cost of Debt of Lifeclean International AB (publ) (LCLEAN.ST) is 7.80%.

	Range	Selected
Cost of equity	5.40% - 7.00%	6.20%
Tax rate	0.40% - 0.40%	0.40%
Cost of debt	7.00% - 8.60%	7.80%
WACC	6.0% - 7.6%	6.8%

WACC

LCLEAN.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.37	0.4

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.40%	7.00%

Tax rate	0.40%	0.40%
Debt/Equity ratio	0.66	0.66
Cost of debt	7.00%	8.60%

After-tax WACC	6.0%	7.6%


Selected WACC	6.8%

LCLEAN.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 LCLEAN.ST:

cost_of_equity (6.20%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.