ATEME.PA WACC - Weighted Average Cost of Capital

The WACC of Ateme SA (ATEME.PA) is 6.7%.

The Cost of Equity of Ateme SA (ATEME.PA) is 7.05%.

The Cost of Debt of Ateme SA (ATEME.PA) is 7.75%.

	Range	Selected
Cost of equity	6.20% - 7.90%	7.05%
Tax rate	12.30% - 26.30%	19.30%
Cost of debt	4.00% - 11.50%	7.75%
WACC	5.3% - 8.1%	6.7%

WACC

ATEME.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.54	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	7.90%

Tax rate	12.30%	26.30%
Debt/Equity ratio	0.49	0.49
Cost of debt	4.00%	11.50%

After-tax WACC	5.3%	8.1%


Selected WACC	6.7%

ATEME.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 ATEME.PA:

cost_of_equity (7.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.54) + 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.