Litgrid ABOVSE:LGD1L 28 WACC % is 8.43% as of Jul. 03, 2026, which is 66% above its 10-year median of 5.09. GuruFocus rates OVSE:LGD1L with a GF Score™ of 28/100 and a GF Value™ of €0.94 (Fairly Valued). The stock has 4 warning signs investors should review. Among 511 Utilities - Regulated companies, Litgrid AB ranks worse than 73.58% on this metric.
As of today (2026-07-03), Litgrid AB's weighted average cost of capital is 8.43%%. Litgrid AB's ROIC % is 13.71% (calculated using TTM income statement data).
Litgrid AB generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
*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.
Litgrid AB (OVSE:LGD1L) WACC % Explanation
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, Litgrid AB's weighted average cost of capital is 8.43%%. Litgrid AB's ROIC % is 13.71% (calculated using TTM income statement data).
Litgrid AB generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
*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
Litgrid AB WACC % Historical Data
* Premium members only.
The historical data trend for Litgrid 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 Utilities - Regulated Electric subindustry, Litgrid 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.
Litgrid AB WACC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Litgrid AB's WACC % distribution charts can be found below:
* The bar in red indicates where Litgrid 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, Litgrid AB's market capitalization (E) is €514.418 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 Mar. 2026, Litgrid AB's latest one-year quarterly average Book Value of Debt (D) is €29.2992 Mil.
a) weight of equity = E / (E + D) = 514.418 / (514.418 + 29.2992) = 0.9461
b) weight of debt = D / (E + D) = 29.2992 / (514.418 + 29.2992) = 0.0539
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 2.88%. 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. Litgrid 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 = 2.88% + 1 * 6% = 8.88%
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 Mar. 2026, Litgrid AB's interest expense (positive number) was €0.178 Mil. Its total Book Value of Debt (D) is €29.2992 Mil.
Cost of Debt = 0.178 / 29.2992 = 0.6075%.
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 = 3.943 / 102.38 = 3.85%.
Litgrid 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)
=
0.9461
*
8.88%
+
0.0539
*
0.6075%
*
(1 - 3.85%)
=
8.43%
* 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.
Litgrid AB (OVSE:LGD1L) has a WACC % of 8.43% as of Jul. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Litgrid AB and its competitors. This is 66% above median its historical median of 5.09. Over the past decade, Litgrid AB's WACC % has ranged from 4.36 to 8.43. According to the industry distribution chart, Litgrid AB ranks #376 out of 511 companies in the Utilities - Regulated industry, placing it in the top 73.6%.
Is Litgrid AB's WACC % too high?
Litgrid AB's current WACC % of 8.43% is 66% above median its 10-year median of 5.09. Over the past 10 years, this metric has ranged from a low of 4.36 to a high of 8.43. The Utilities - Regulated industry median WACC % is 5.90. Litgrid AB's value of 8.43% is 42.9% above this industry median. Based on the distribution chart, Litgrid AB ranks #376 out of 511 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Litgrid AB has a GF Score™ of 28/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Litgrid AB's WACC % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Litgrid AB ranks #376 out of 511 companies for WACC %. This places Litgrid AB in the lower half of its industry. The industry median WACC % is 5.90. Litgrid AB's value of 8.43% is 42.9% above this benchmark. Historically, Litgrid AB's own WACC % has ranged from 4.36 to 8.43 over the past decade. While the company's 10-year median is 5.09 vs. the industry median of 5.90, Litgrid AB has consistently been above 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 an Utilities - Regulated company?
The median WACC % among Utilities - Regulated companies is 5.90, based on 511 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. Litgrid AB's current WACC % of 8.43% is 42.9% above 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 Litgrid AB and its competitors. For the Utilities - Regulated industry, the median WACC % is 5.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Litgrid AB's current WACC % is 8.43%, which is 66% above median its own 10-year median of 5.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Litgrid AB stock overvalued right now?
Based on GuruFocus' analysis, Litgrid AB (OVSE:LGD1L) is currently considered Fairly Valued. The stock's GF Value™ is €0.94, compared to a current price of €1.02 — trading 8.5% above its estimated fair value. The current WACC % is 8.43%, which is 66% above median its 10-year median of 5.09 and 42.9% above the Utilities - Regulated industry median of 5.90. Litgrid AB's overall GF Score™ is 28/100 with 4 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 Litgrid AB (OVSE:LGD1L), the current WACC % is 8.43% as of Jul. 03, 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 Litgrid AB (OVSE:LGD1L) Overvalued in 2026?
Based on GuruFocus' analysis, Litgrid AB stock appears to be overvalued.
The current stock price of €1.02 is trading 8.5% above its estimated GF Value™ of €0.94.
GuruFocus considers Litgrid AB to be Fairly Valued.
Key valuation signals for OVSE:LGD1L:
WACC %: 8.43% (66% above median its 10-year median of 5.09)
GF Value™: €0.94 vs. price of €1.02 (8.5% above fair value)
Industry Position: 42.9% above the Utilities - Regulated median (#376 of 511)
No single metric tells the full story. See the OVSE:LGD1L stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Litgrid AB is engaged in the provision of electricity transmission and related services mainly in Lithuania. The services offered by the company include electricity transmission via high-voltage (110-400 kV) electrical installations; trading in imbalance and balancing energy to maintain the balance between production and consumption; system services; and data management. Its customers mainly include grid operators and producer and consumers connected to the transmission grid. Geographically, the company generates maximum revenue from its business in Lithuania, and the rest from Estonia, Sweden, Poland, Luxembourg, Latvia, Denmark, Norway, and other countries.
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