LVIDE.AS WACC - Weighted Average Cost of Capital
The WACC of Lavide Holding NV (LVIDE.AS) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.7% | 7.95% |
| Tax rate | 25.0% - 25.3% | 25.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 9.3% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.72 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.7% |
| Tax rate | 25.0% | 25.3% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 9.3% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LVIDE.AS | Lavide Holding NV | 0.07 | 0.32 | 0.31 |
| EUROC.AT | Euroconsultants SA | 0.04 | 0.65 | 0.63 |
| IAG.WA | Satis Group SA | 0.04 | 1.02 | 0.99 |
| MLB.WA | Makolab SA | 0.01 | 1.11 | 1.1 |
| QUAL.AT | Quality and Reliability SA | 0.2 | 1.08 | 0.94 |
| RTC.DE | Realtech AG | 0.07 | 1.09 | 1.04 |
| SBE.WA | Softblue SA | 0.01 | 0.17 | 0.17 |
| SMRT.L | Smartspace Software PLC | 0.02 | 1.08 | 1.06 |
| VERT B.ST | Vertiseit AB (publ) | 0.17 | 0.48 | 0.43 |
| WIRTEK.CO | Wirtek A/S | 0.16 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.55 | 0.96 |
| Relevered beta | 0.58 | 1.01 |
| Adjusted relevered beta | 0.72 | 1.01 |
LVIDE.AS'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 LVIDE.AS:
cost_of_equity (7.95%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.72) + 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.