ALBOU.PA WACC - Weighted Average Cost of Capital
The WACC of Bourrelier Group SA (ALBOU.PA) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.0% | 7.6% |
| Tax rate | 24.6% - 28.1% | 26.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 7.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.55 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.0% |
| Tax rate | 24.6% | 28.1% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 7.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALBOU.PA | Bourrelier Group SA | 0.44 | 0.23 | 0.17 |
| ALMRB.PA | MR Bricolage SA | 1.08 | 0.38 | 0.21 |
| BMAX.ST | Byggmax Group AB | 0.82 | 0.68 | 0.42 |
| CFYN.L | Caffyns PLC | 2 | -0.01 | 0 |
| CLAS B.ST | Clas Ohlson AB | 0.11 | 0.68 | 0.63 |
| HBH.DE | Hornbach Holding AG & Co KGaA | 1.02 | 0.89 | 0.5 |
| HBM.DE | Hornbach Baumarkt AG | 1.19 | 1.36 | 0.72 |
| KGF.L | Kingfisher PLC | 0.41 | 0.79 | 0.6 |
| SAMS.PA | Samse SA | 1.22 | 0.53 | 0.28 |
| TPT.L | Topps Tiles PLC | 1.55 | 0.44 | 0.2 |
| Low | High | |
| Unlevered beta | 0.25 | 0.45 |
| Relevered beta | 0.33 | 0.6 |
| Adjusted relevered beta | 0.55 | 0.73 |
ALBOU.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 ALBOU.PA:
cost_of_equity (7.60%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.55) + 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.