The WACC of Eurasia Groupe SA (ALEUA.PA) is 3.9%.
Range | Selected | |
Cost of equity | 4.0% - 7.8% | 5.9% |
Tax rate | 25.9% - 27.1% | 26.5% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 3.7% - 4.0% | 3.9% |
Category | Low | High |
Long-term bond rate | 3.0% | 3.5% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.09 | 0.48 |
Additional risk adjustments | 0.5% | 1.0% |
Cost of equity | 4.0% | 7.8% |
Tax rate | 25.9% | 27.1% |
Debt/Equity ratio | 11.3 | 11.3 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 3.7% | 4.0% |
Selected WACC | 3.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ALEUA.PA | Eurasia Groupe SA | 11.3 | -0.36 | -0.04 |
CRC.L | Circle Property PLC | 20.91 | -1.98 | -0.12 |
GALIM.PA | Galimmo SCA | 0.43 | -0.18 | -0.14 |
GR1T.L | Grit Real Estate Income Group Ltd | 10.04 | -0.33 | -0.04 |
KAPIAB.ST | Kalleback Property Invest AB | 0.69 | -0.11 | -0.07 |
PCA.L | Palace Capital PLC | 0.13 | 0.54 | 0.49 |
PHN.WA | Polski Holding Nieruchomosci SA | 3.66 | 0.44 | 0.12 |
PNS.L | Panther Securities P L C | 1.35 | 0.05 | 0.02 |
RCMN.DE | RCM Beteiligungs AG | 1.37 | 0.09 | 0.05 |
YISC.MC | ISC Fresh Water Investment SOCIMI SA | 6.91 | 0.05 | 0.01 |
Low | High | |
Unlevered beta | -0.04 | 0.01 |
Relevered beta | -0.36 | 0.22 |
Adjusted relevered beta | 0.09 | 0.48 |
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 ALEUA.PA:
cost_of_equity (5.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.09) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.