LTX.WA WACC - Weighted Average Cost of Capital
The WACC of Lentex SA (LTX.WA) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.5% - 10.3% | 9.4% |
| Tax rate | 16.9% - 19.2% | 18.05% |
| Cost of debt | 4.6% - 6.1% | 5.35% |
| WACC | 8.2% - 10.0% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.47 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 10.3% |
| Tax rate | 16.9% | 19.2% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.6% | 6.1% |
| After-tax WACC | 8.2% | 10.0% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LTX.WA | Lentex SA | 0.07 | -0.33 | -0.31 |
| ACWN.DE | AS Creation Tapeten AG | 0.58 | 0.18 | 0.12 |
| AIEA.L | Airea PLC | 0.12 | 0.33 | 0.3 |
| CFX.L | Colefax Group PLC | 0.49 | 0.18 | 0.13 |
| DCR.WA | Decora SA | 0.1 | 0.45 | 0.42 |
| DGKLB.IS | Dogtas Kelebek Mobilya Sanayi ve Ticaret AS | 0.78 | 1.36 | 0.83 |
| GBUS.MI | Gibus SpA | 0.8 | 0.09 | 0.05 |
| SKN1T.TL | Nordic Fibreboard AS | 0.83 | 0.39 | 0.23 |
| TCM.CO | TCM Group A/S | 0.37 | 0.36 | 0.27 |
| VBL1L.VS | Vilniaus Baldai AB | 0.71 | 0.43 | 0.27 |
| Low | High | |
| Unlevered beta | 0.19 | 0.27 |
| Relevered beta | 0.21 | 0.28 |
| Adjusted relevered beta | 0.47 | 0.52 |
LTX.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 LTX.WA:
cost_of_equity (9.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * 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.