LRQ.WA
Larq SA
Price:  
1.83 
PLN
Volume:  
17,630.00
Poland | Media
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

LRQ.WA WACC - Weighted Average Cost of Capital

The WACC of Larq SA (LRQ.WA) is 7.2%.

The Cost of Equity of Larq SA (LRQ.WA) is 8.75%.
The Cost of Debt of Larq SA (LRQ.WA) is 5.00%.

Range Selected
Cost of equity 7.80% - 9.70% 8.75%
Tax rate 17.50% - 20.00% 18.75%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.5% - 7.8% 7.2%
WACC

LRQ.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.36 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 9.70%
Tax rate 17.50% 20.00%
Debt/Equity ratio 0.51 0.51
Cost of debt 5.00% 5.00%
After-tax WACC 6.5% 7.8%
Selected WACC 7.2%

LRQ.WA'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 LRQ.WA:

cost_of_equity (8.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.