AURE.PA WACC - Weighted Average Cost of Capital
The WACC of Aurea SA (AURE.PA) is 5.2%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.7% | 6.5% |
| Tax rate | 19.1% - 26.6% | 22.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 5.7% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.4 | 0.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.7% |
| Tax rate | 19.1% | 26.6% |
| Debt/Equity ratio | 0.99 | 0.99 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 5.7% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AURE.PA | Aurea SA | 0.99 | 0.27 | 0.15 |
| ALESA.PA | Ecoslops SA | 4.77 | -0.16 | -0.03 |
| ATH.MI | Ambienthesis SpA | 1.15 | 0.48 | 0.25 |
| AUG.L | Augean PLC | 0.04 | 0.73 | 0.71 |
| GPE.PA | Groupe Pizzorno Environnement SA | 0.39 | -0.02 | -0.01 |
| GRI.MC | Grino Ecologic SA | 0.55 | -0.17 | -0.12 |
| GTS.WA | Geotrans SA | 0 | 0.21 | 0.21 |
| MBR.WA | Mo-Bruk SA | 0.11 | 0.29 | 0.26 |
| OBL.WA | Orzel Bialy SA | 0.01 | 0.11 | 0.11 |
| REAT.L | React Group PLC | 0.06 | -0.04 | -0.04 |
| Low | High | |
| Unlevered beta | 0.06 | 0.18 |
| Relevered beta | 0.1 | 0.31 |
| Adjusted relevered beta | 0.4 | 0.54 |
AURE.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 AURE.PA:
cost_of_equity (6.50%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.4) + 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.