Lundin Energy AB (LUNE.ST) WACC Analysis

As of May 22, 2025, Lundin Energy AB (LUNE.ST) carries a Weighted Average Cost of Capital (WACC) of 7.5%. WACC reflects the blended rate Lundin Energy AB must pay to both equity and debt holders.

Within that, the cost of equity is 9.3%, the cost of debt is 5.0%, and the effective tax rate is 21.4%.

Breakdown of WACC Components

• Long-term bond rate: 2.3% – 2.8%
• Equity market risk premium: 4.7% – 5.7%
• Adjusted beta: 1.48 – 1.63
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 7.5%, Lundin Energy AB must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.