ARTE.PA WACC - Weighted Average Cost of Capital

The WACC of Artea SA (ARTE.PA) is 7.3%.

The Cost of Equity of Artea SA (ARTE.PA) is 5.80%.

The Cost of Debt of Artea SA (ARTE.PA) is 9.40%.

	Range	Selected
Cost of equity	5.00% - 6.60%	5.80%
Tax rate	12.80% - 17.90%	15.35%
Cost of debt	4.00% - 14.80%	9.40%
WACC	3.9% - 10.6%	7.3%

WACC

ARTE.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.35	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.00%	6.60%

Tax rate	12.80%	17.90%
Debt/Equity ratio	2.65	2.65
Cost of debt	4.00%	14.80%

After-tax WACC	3.9%	10.6%


Selected WACC	7.3%

ARTE.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 ARTE.PA:

cost_of_equity (5.80%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.35) + 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.