LIVAN.AT WACC - Weighted Average Cost of Capital

The WACC of Livanis Publications SA (LIVAN.AT) is 5.6%.

The Cost of Equity of Livanis Publications SA (LIVAN.AT) is 12.90%.

The Cost of Debt of Livanis Publications SA (LIVAN.AT) is 5.50%.

	Range	Selected
Cost of equity	8.00% - 17.80%	12.90%
Tax rate	5.30% - 5.90%	5.60%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.0% - 7.2%	5.6%

WACC

LIVAN.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.53	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	17.80%

Tax rate	5.30%	5.90%
Debt/Equity ratio	16.97	16.97
Cost of debt	4.00%	7.00%

After-tax WACC	4.0%	7.2%


Selected WACC	5.6%

LIVAN.AT'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 LIVAN.AT:

cost_of_equity (12.90%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.53) + 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.