Compagnie Lebon SA (LBON.PA) WACC Analysis

As of May 27, 2025, Compagnie Lebon SA (LBON.PA) carries a Weighted Average Cost of Capital (WACC) of 6.4%. WACC reflects the blended rate Compagnie Lebon SA must pay to both equity and debt holders.

Within that, the cost of equity is 9.1%, the cost of debt is 5.0%, and the effective tax rate is 25.8%.

Breakdown of WACC Components

• Long-term bond rate: 3.1% – 3.6%
• Equity market risk premium: 6.2% – 7.2%
• Adjusted beta: 0.96 – 1.39
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.7

What It Means for Investors

With a selected WACC of 6.4%, Compagnie Lebon SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.