BEN.PA
Beneteau SA
Price:  
8.58 
EUR
Volume:  
118,552.00
France | Leisure Products
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BEN.PA WACC - Weighted Average Cost of Capital

The WACC of Beneteau SA (BEN.PA) is 8.7%.

The Cost of Equity of Beneteau SA (BEN.PA) is 12.70%.
The Cost of Debt of Beneteau SA (BEN.PA) is 5.00%.

Range Selected
Cost of equity 11.00% - 14.40% 12.70%
Tax rate 25.50% - 26.40% 25.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 9.6% 8.7%
WACC

BEN.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.37 1.52
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 14.40%
Tax rate 25.50% 26.40%
Debt/Equity ratio 0.8 0.8
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 9.6%
Selected WACC 8.7%

BEN.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 BEN.PA:

cost_of_equity (12.70%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.37) + 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.