LVMH Moet Hennessy Louis Vuitton SE (MC.PA) WACC · Cost of Capital Analysis

WACC

9.5%

Blended cost of capital (illustrative)

Cost of Equity (K_e)

10.3%

R_f + β × ERP

Beta

1.05

Practitioner-reasonable sector estimate

After-tax K_d

3.0%

Pre-tax × (1 − t)

Illustrative directional reference. The inputs on this page are practitioner-reasonable approximations anchored to public sector norms and the issuer’s known capital profile. They are intended for learning the WACC method against a specific company, comparing across peers at the sector level, and stress-testing a live model. They are not sourced to a specific 10-K/10-Q line item and should not be cited as an audited financial figure.

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The Calculation, Walked

Component	Value	Source / Assumption
Risk-free rate (R_f)	4.50%	10-year US Treasury yield, illustrative July 2026 anchor
Equity risk premium (ERP)	5.50%	Damodaran-style implied ERP, illustrative July 2026 anchor
Beta (β)	1.05	Practitioner-reasonable sector estimate; refine to a 5-year weekly regression in a live model
Cost of equity (K_e)	10.3%	CAPM: R_f + β × ERP = 4.50% + 1.05 × 5.50%
Pre-tax cost of debt (K_d)	4.00%	Illustrative investment-grade curve estimate at issuer’s indicative rating
Marginal tax rate (t)	25.8%	Blended statutory rate at domicile; refine to effective rate in a live model
After-tax cost of debt	3.0%	K_d × (1 − t) = 4.00% × 74.2%
Equity weight (E/V)	90.0%	Practitioner-reasonable market-value approximation
Debt weight (D/V)	10.0%	Practitioner-reasonable market-value approximation
WACC	9.5%	(E/V × K_e) + (D/V × K_d after-tax) = 9.27% + 0.30%

Practitioner Notes

The inputs below are directional and illustrative — anchored to public sector norms and the issuer’s known capital structure. This is a practitioner reference for learning the WACC method against a specific company profile, not an audited financial statement. Practitioners running a live model should refresh each input against current filings and market data. Listed on Euronext Paris (ticker MC). Reported in EUR. Cost of debt reflects the investment-grade euro corporate curve; the equity risk premium is applied against a US 10-year proxy for cross-sector comparability. Ownership note: LVMH is the subject of a Baratelli Institute acquisition record. The Arnault family holds a controlling voting block through Groupe Arnault / Christian Dior SE, materially reducing effective float and stabilizing the shareholder base.

Where This Number Fits

Use this illustrative WACC as a directional anchor when learning the DCF and value-based management framework against LVMH Moet Hennessy Louis Vuitton SE, or as a starting point for a peer-comparison table across the Luxury Goods sector. For equity-only valuation frameworks (dividend discount models, residual income), use the cost of equity K_e of 10.3% instead of the blended WACC.

The methodology page walks each input in more depth and explains where reasonable practitioners disagree. If your own model uses different inputs, the companion Excel workbook exposes every formula so you can substitute directly.

Cite This Page

    Baratelli Institute. “LVMH Moet Hennessy Louis Vuitton SE (MC.PA) — WACC (Illustrative Directional).”
    Baratelli WACC Reference. Snapshot date 2026-07-06.

    https://baratelliinstitute.com/wacc/mc-pa.html
  

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