LVMH Moet Hennessy Louis Vuitton SE (MC.PA) WACC Analysis

As of July 16, 2025, LVMH Moet Hennessy Louis Vuitton SE (MC.PA) carries a Weighted Average Cost of Capital (WACC) of 9.5%. WACC reflects the blended rate LVMH Moet Hennessy Louis Vuitton SE must pay to both equity and debt holders.

Within that, the cost of equity is 9.1%, the cost of debt is 4.0%, and the effective tax rate is 26.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.0% – 3.5%
• Equity market risk premium: 5.8% – 6.8%
• Adjusted beta: 1.06 – 1.17
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.17

What It Means for Investors

With a selected WACC of 9.5%, LVMH Moet Hennessy Louis Vuitton SE must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.