AC.PA WACC - Weighted Average Cost of Capital
The WACC of Accor SA (AC.PA) is 6.3%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.2% | 7.2% |
| Tax rate | 12.2% - 19.0% | 15.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.0% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.56 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.2% |
| Tax rate | 12.2% | 19.0% |
| Debt/Equity ratio | 0.33 | 0.33 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.0% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AC.PA | Accor SA | 0.33 | 1.21 | 0.95 |
| DHG.IR | Dalata Hotel Group PLC | 0.86 | 1.49 | 0.87 |
| IHG.L | InterContinental Hotels Group PLC | 0.2 | 1 | 0.86 |
| MEL.MC | Melia Hotels International SA | 1.61 | 0.87 | 0.37 |
| NHH.MC | NH Hotel Group SA | 0.9 | -0.42 | -0.24 |
| ODHN.SW | Orascom Development Holding AG | 1.48 | -0.36 | -0.16 |
| PNDX B.ST | Pandox AB | 1.28 | 0.53 | 0.26 |
| SHOT.ST | Scandic Hotels Group AB | 2.75 | 0.88 | 0.27 |
| VAC.PA | Pierre et Vacances SA | 4.92 | 1.35 | 0.26 |
| WTB.L | Whitbread PLC | 1.15 | 0.57 | 0.29 |
| Low | High | |
| Unlevered beta | 0.27 | 0.32 |
| Relevered beta | 0.34 | 0.42 |
| Adjusted relevered beta | 0.56 | 0.61 |
AC.PA's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for AC.PA:
cost_of_equity (7.20%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.56) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.