LSX.DE WACC - Weighted Average Cost of Capital
The WACC of LS telcom AG (LSX.DE) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.8% | 6.5% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.4% - 6.8% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.47 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.8% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.5 | 0.5 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.4% | 6.8% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LSX.DE | LS telcom AG | 0.5 | 0.97 | 0.72 |
| AVEN.ST | Avensia AB | 0.14 | 0.55 | 0.5 |
| DLE.IR | Datalex PLC | 0.23 | 0.41 | 0.35 |
| DOX.MI | Doxee SpA | 1.05 | 0.65 | 0.37 |
| EFECTE.HE | Efecte Oyj | 0.02 | -1.1 | -1.09 |
| ENALYZ.CO | Enalyzer A/S | 1.1 | -0.31 | -0.18 |
| EPSIL.AT | Epsilon Net SA | 0.04 | 0.93 | 0.91 |
| GHT.L | Gresham Technologies PLC | 0.01 | 0.05 | 0.05 |
| ISHA.DE | Intershop Communications AG | 0.45 | 0.3 | 0.23 |
| MIRA.L | Mirada PLC | 24.79 | 0.14 | 0.01 |
| Low | High | |
| Unlevered beta | 0.16 | 0.36 |
| Relevered beta | 0.21 | 0.49 |
| Adjusted relevered beta | 0.47 | 0.66 |
LSX.DE'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 LSX.DE:
cost_of_equity (6.50%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.