LOOMIS.ST WACC - Weighted Average Cost of Capital
The WACC of Loomis AB (LOOMIS.ST) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.2% - 10.5% | 8.35% |
| Tax rate | 28.2% - 29.3% | 28.75% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 7.9% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.73 | 1.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 10.5% |
| Tax rate | 28.2% | 29.3% |
| Debt/Equity ratio | 0.54 | 0.54 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 7.9% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LOOMIS.ST | Loomis AB | 0.53 | 0.39 | 0.29 |
| AKYHO.IS | Akdeniz Yatirim Holding AS | 0.01 | 0.96 | 0.95 |
| BFSA.DE | Befesa SA | 0.62 | 1.4 | 0.97 |
| CASH.MC | Prosegur Cash SA | 1.11 | 0.85 | 0.47 |
| GFS.L | G4S PLC | 0.77 | 1.28 | 0.82 |
| MRL.L | Marlowe PLC | 0.92 | 0.35 | 0.21 |
| MTO.L | Mitie Group PLC | 0.17 | 1.09 | 0.97 |
| PSG.MC | Prosegur Compania de Seguridad SA | 1.44 | 0.74 | 0.37 |
| TSEC.ST | Tempest Security AB | 0.36 | 0.05 | 0.04 |
| CXW | Corecivic Inc | 0.41 | 1.46 | 1.13 |
| Low | High | |
| Unlevered beta | 0.43 | 0.87 |
| Relevered beta | 0.6 | 1.21 |
| Adjusted relevered beta | 0.73 | 1.14 |
LOOMIS.ST'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 LOOMIS.ST:
cost_of_equity (8.35%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.73) + 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.