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Lyko Group ABFRA:E8P -0.71%61 WACC % is 7.53% as of Aug. 19, 2026, which is 3% below its 10-year median of 7.78. GuruFocus rates FRA:E8P with a GF Score™ of 61/100 and a GF Value™ of €12.68 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 2,034 Consumer Packaged Goods companies, Lyko Group AB ranks better than 53.98% on this metric.
As of today (2026-08-19), Lyko Group AB's weighted average cost of capital is 7.53%%. Lyko Group AB's ROIC % is 3.19% (calculated using TTM income statement data).
Lyko Group AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Lyko Group AB's weighted average cost of capital is 7.53%%. Lyko Group AB's ROIC % is 3.19% (calculated using TTM income statement data).
Lyko Group AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Lyko Group AB WACC % Historical Data
* Premium members only.
The historical data trend for Lyko Group AB's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Household & Personal Products subindustry, Lyko Group AB's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lyko Group AB WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lyko Group AB's WACC % distribution charts can be found below:
* The bar in red indicates where Lyko Group AB's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Lyko Group AB's market capitalization (E) is €109.644 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Jun. 2026, Lyko Group AB's latest one-year quarterly average Book Value of Debt (D) is €125.3558 Mil.
a) weight of equity = E / (E + D) = 109.644 / (109.644 + 125.3558) = 0.4666
b) weight of debt = D / (E + D) = 125.3558 / (109.644 + 125.3558) = 0.5334
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 2.7807%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Lyko Group AB's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 2.7807% + 1 * 6% = 8.7807%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Jun. 2026, Lyko Group AB's interest expense (positive number) was €8.075 Mil. Its total Book Value of Debt (D) is €125.3558 Mil.
Cost of Debt = 8.075 / 125.3558 = 6.4417%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0.983 / -0.778 = -126.35%, which is less than 0%. Therefore it's set to 0%.
Lyko Group AB's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.4666
*
8.7807%
+
0.5334
*
6.4417%
*
(1 - 0%)
=
7.53%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lyko Group AB (FRA:E8P) has a WACC % of 7.53% as of Aug. 19, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Lyko Group AB and its competitors. This is near median its historical median of 7.78. According to the industry distribution chart, Lyko Group AB ranks #936 out of 2034 companies in the Consumer Packaged Goods industry, placing it in the top 46%.
Is Lyko Group AB's WACC % too high?
Lyko Group AB's current WACC % of 7.53% is near median its 10-year median of 7.78. The Consumer Packaged Goods industry median WACC % is 7.57. Lyko Group AB's value of 7.53% is 0.5% below this industry median. Based on the distribution chart, Lyko Group AB ranks #936 out of 2034 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Lyko Group AB has a GF Score™ of 61/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lyko Group AB's WACC % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Lyko Group AB ranks #936 out of 2034 companies for WACC %. This puts Lyko Group AB in the upper half of its industry. The industry median WACC % is 7.57. Lyko Group AB's value of 7.53% is 0.5% below this benchmark. While the company's 10-year median is 7.78 vs. the industry median of 7.57, Lyko Group AB has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.57, based on 2,034 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lyko Group AB's current WACC % of 7.53% is 0.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Lyko Group AB and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lyko Group AB's current WACC % is 7.53%, which is near median its own 10-year median of 7.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lyko Group AB stock overvalued right now?
Based on GuruFocus' analysis, Lyko Group AB (FRA:E8P) is currently considered Significantly Undervalued. The stock's GF Value™ is €12.68, compared to a current price of €6.95 — trading 45.2% below its estimated fair value. The current WACC % is 7.53%, which is near median its 10-year median of 7.78 and 0.5% below the Consumer Packaged Goods industry median of 7.57. Lyko Group AB's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Lyko Group AB (FRA:E8P), the current WACC % is 7.53% as of Aug. 19, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lyko Group AB (FRA:E8P) Overvalued in 2026?
Based on GuruFocus' analysis, Lyko Group AB stock appears to be undervalued.
The current stock price of €6.95 is trading 45.2% below its estimated GF Value™ of €12.68.
GuruFocus considers Lyko Group AB to be Significantly Undervalued.
Key valuation signals for FRA:E8P:
WACC %: 7.53% (near median its 10-year median of 7.78)
GF Value™: €12.68 vs. price of €6.95 (45.2% below fair value)
Industry Position: 0.5% below the Consumer Packaged Goods median (#936 of 2034)
No single metric tells the full story. See the FRA:E8P stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lyko Group AB is engaged in offering beauty products. The company operates globally via Lyko.com, the Lyko app, and various stores in Sweden, Norway, and Finland. It manages the entire chain from product development in its labs and manufacturing in a factory in Gothenburg to warehousing and sales to hairdressers and retailers. The company offers various hair, skin, makeup, fragrance, and other personal care products through brands like Waterclouds, Rebecca Stella, Pusher, Happy Crazy Mine, Bear Junk, By Lyko, and others. It reports its operations within two business segments: Nordics, which includes Sweden, Norway, Finland, and Denmark; and Europe, which includes Germany, Austria, Poland, and the Netherlands. The majority of the company's revenue is generated from the Nordics segment.
61GF Score
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