LNA.PA WACC - Weighted Average Cost of Capital

The WACC of LNA Sante SA (LNA.PA) is 5.5%.

The Cost of Equity of LNA Sante SA (LNA.PA) is 11.10%.

The Cost of Debt of LNA Sante SA (LNA.PA) is 5.30%.

	Range	Selected
Cost of equity	9.00% - 13.20%	11.10%
Tax rate	36.10% - 38.20%	37.15%
Cost of debt	4.00% - 6.60%	5.30%
WACC	4.4% - 6.7%	5.5%

WACC

LNA.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.03	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	13.20%

Tax rate	36.10%	38.20%
Debt/Equity ratio	2.55	2.55
Cost of debt	4.00%	6.60%

After-tax WACC	4.4%	6.7%


Selected WACC	5.5%

LNA.PA'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 LNA.PA:

cost_of_equity (11.10%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.03) + 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.