LEN.WA WACC - Weighted Average Cost of Capital

The WACC of Lena Lighting SA (LEN.WA) is 10.4%.

The Cost of Equity of Lena Lighting SA (LEN.WA) is 9.80%.

The Cost of Debt of Lena Lighting SA (LEN.WA) is 20.95%.

	Range	Selected
Cost of equity	8.70% - 10.90%	9.80%
Tax rate	20.60% - 22.40%	21.50%
Cost of debt	7.00% - 34.90%	20.95%
WACC	8.4% - 12.4%	10.4%

WACC

LEN.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.5	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	10.90%

Tax rate	20.60%	22.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	34.90%

After-tax WACC	8.4%	12.4%


Selected WACC	10.4%

LEN.WA'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 LEN.WA:

cost_of_equity (9.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * 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.