ARTO.PA WACC - Weighted Average Cost of Capital

The WACC of Societe Industrielle et Financiere de l'Artois SA (ARTO.PA) is 6.9%.

The Cost of Equity of Societe Industrielle et Financiere de l'Artois SA (ARTO.PA) is 6.90%.

The Cost of Debt of Societe Industrielle et Financiere de l'Artois SA (ARTO.PA) is 4.25%.

	Range	Selected
Cost of equity	5.90% - 7.90%	6.90%
Tax rate	13.10% - 19.00%	16.05%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.9% - 7.8%	6.9%

WACC

ARTO.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.51	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	7.90%

Tax rate	13.10%	19.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	4.50%

After-tax WACC	5.9%	7.8%


Selected WACC	6.9%

ARTO.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 ARTO.PA:

cost_of_equity (6.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.51) + 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.