BIG.PA WACC - Weighted Average Cost of Capital
The WACC of Bigben Interactive SA (BIG.PA) is 6.6%.
| Range | Selected | |
| Cost of equity | 24.0% - 37.3% | 30.65% |
| Tax rate | 17.2% - 22.7% | 19.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 7.1% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 3.6 | 4.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 24.0% | 37.3% |
| Tax rate | 17.2% | 22.7% |
| Debt/Equity ratio | 9.25 | 9.25 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 7.1% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIG.PA | Bigben Interactive SA | 9.25 | 0.25 | 0.03 |
| BCRA.PA | Baccarat SA | 0.36 | 0.99 | 0.76 |
| BEC.MI | B & C Speakers SpA | 0.1 | 0.22 | 0.2 |
| BO.CO | Bang & Olufsen A/S | 0.31 | 0.21 | 0.16 |
| DGKLB.IS | Dogtas Kelebek Mobilya Sanayi ve Ticaret AS | 0.78 | 1.36 | 0.83 |
| PWS.MI | Powersoft SpA | 0.01 | 0.57 | 0.56 |
| TOM2.AS | TomTom NV | 0.07 | 1.63 | 1.55 |
| TUNE.L | Focusrite PLC | 0.45 | 0.78 | 0.57 |
| VTC.L | Vitec Group Plc | 0.27 | 1.32 | 1.08 |
| YATAS.IS | Yatas Yatak ve Yorgan Sanayi Ticaret AS | 0.22 | 1.44 | 1.22 |
| Low | High | |
| Unlevered beta | 0.57 | 0.79 |
| Relevered beta | 4.88 | 6.79 |
| Adjusted relevered beta | 3.6 | 4.88 |
BIG.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 BIG.PA:
cost_of_equity (30.65%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (3.6) + 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.