LLN.MC WACC - Weighted Average Cost of Capital

The WACC of Lleidanetworks Serveis Telematics SA (LLN.MC) is 7.3%.

The Cost of Equity of Lleidanetworks Serveis Telematics SA (LLN.MC) is 8.75%.

The Cost of Debt of Lleidanetworks Serveis Telematics SA (LLN.MC) is 4.25%.

	Range	Selected
Cost of equity	7.70% - 9.80%	8.75%
Tax rate	2.20% - 2.90%	2.55%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.5% - 8.1%	7.3%

WACC

LLN.MC WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.62	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	9.80%

Tax rate	2.20%	2.90%
Debt/Equity ratio	0.45	0.45
Cost of debt	4.00%	4.50%

After-tax WACC	6.5%	8.1%


Selected WACC	7.3%

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 (8.75%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.62) + 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.