LLN.MC WACC - Weighted Average Cost of Capital
The WACC of Lleidanetworks Serveis Telematics SA (LLN.MC) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.5% - 9.6% | 8.55% |
| Tax rate | 2.2% - 2.9% | 2.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.5% - 8.2% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.59 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 9.6% |
| Tax rate | 2.2% | 2.9% |
| Debt/Equity ratio | 0.36 | 0.36 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.5% | 8.2% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LLN.MC | Lleidanetworks Serveis Telematics SA | 0.36 | 0.56 | 0.42 |
| ADT.L | Adept Technology Group PLC | 0.81 | 1.5 | 0.84 |
| E4C.DE | Ecotel Communication AG | 0.15 | 0.34 | 0.3 |
| NET.WA | Netia SA | 0.27 | 0.2 | 0.16 |
| NEWS.AT | Newsphone Hellas SA | 0.17 | 0.48 | 0.41 |
| PHR.LS | Pharol SGPS SA | 0 | 0.39 | 0.39 |
| R22.WA | R22 SA | 0.33 | 0.43 | 0.33 |
| SIMINN.IC | Siminn hf | 0.54 | 0.41 | 0.27 |
| SYN.IC | Syn hf | 2.92 | 0.03 | 0.01 |
| U2K.WA | Unima 2000 Systemy Teleinformatyczne SA | 0.13 | 0.18 | 0.16 |
| Low | High | |
| Unlevered beta | 0.29 | 0.35 |
| Relevered beta | 0.39 | 0.48 |
| Adjusted relevered beta | 0.59 | 0.65 |
LLN.MC'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 LLN.MC:
cost_of_equity (8.55%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.59) + 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.