LPE.PA WACC - Weighted Average Cost of Capital
The WACC of Laurent Perrier SA (LPE.PA) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.6% - 10.4% | 8.5% |
| Tax rate | 26.9% - 27.8% | 27.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 8.4% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.62 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 10.4% |
| Tax rate | 26.9% | 27.8% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 8.4% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LPE.PA | Laurent Perrier SA | 0.42 | 0.46 | 0.35 |
| ALLAN.PA | Lanson BCC SA | 2.12 | 0.25 | 0.1 |
| ARCUS.OL | Arcus ASA | 0.62 | 0.45 | 0.31 |
| CCR.L | C&C Group PLC | 0.47 | 1.2 | 0.9 |
| LINDA.TL | Linda Nektar AS | 0 | 0.76 | 0.76 |
| MBWS.PA | Marie Brizard Wine and Spirits SA | 0.02 | -0.03 | -0.03 |
| RCO.PA | Remy Cointreau SA | 0.29 | 0.99 | 0.81 |
| RI.PA | Pernod Ricard SA | 0.59 | 0.92 | 0.64 |
| STCK.L | Stock Spirits Group PLC | 0.09 | 0.94 | 0.88 |
| VRAP.PA | Vranken Pommery Monopole SA | 6.62 | 0.06 | 0.01 |
| Low | High | |
| Unlevered beta | 0.33 | 0.69 |
| Relevered beta | 0.43 | 0.9 |
| Adjusted relevered beta | 0.62 | 0.93 |
LPE.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 LPE.PA:
cost_of_equity (8.50%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * 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.