ACA.PA
Credit Agricole SA
Price:  
15.63 
EUR
Volume:  
4,483,104.00
France | Banks
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ACA.PA WACC - Weighted Average Cost of Capital

The WACC of Credit Agricole SA (ACA.PA) is 5.8%.

The Cost of Equity of Credit Agricole SA (ACA.PA) is 19.00%.
The Cost of Debt of Credit Agricole SA (ACA.PA) is 5.00%.

Range Selected
Cost of equity 15.10% - 22.90% 19.00%
Tax rate 23.00% - 23.10% 23.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 6.3% 5.8%
WACC

ACA.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 2.08 2.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.10% 22.90%
Tax rate 23.00% 23.10%
Debt/Equity ratio 6.76 6.76
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 6.3%
Selected WACC 5.8%

ACA.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 ACA.PA:

cost_of_equity (19.00%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (2.08) + 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.