ATI.PA WACC - Weighted Average Cost of Capital

The WACC of Actia Group SA (ATI.PA) is 11.4%.

The Cost of Equity of Actia Group SA (ATI.PA) is 15.70%.

The Cost of Debt of Actia Group SA (ATI.PA) is 10.55%.

	Range	Selected
Cost of equity	13.10% - 18.30%	15.70%
Tax rate	3.90% - 7.20%	5.55%
Cost of debt	4.00% - 17.10%	10.55%
WACC	6.3% - 16.5%	11.4%

WACC

ATI.PA WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	6.2%	7.2%
Adjusted beta	1.61	1.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	18.30%

Tax rate	3.90%	7.20%
Debt/Equity ratio	2.75	2.75
Cost of debt	4.00%	17.10%

After-tax WACC	6.3%	16.5%


Selected WACC	11.4%

ATI.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 ATI.PA:

cost_of_equity (15.70%) = risk_free_rate (3.35%) + equity_risk_premium (6.70%) * adjusted_beta (1.61) + 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.