BIG.PA WACC - Weighted Average Cost of Capital

The WACC of Bigben Interactive SA (BIG.PA) is 6.4%.

The Cost of Equity of Bigben Interactive SA (BIG.PA) is 108.90%.

The Cost of Debt of Bigben Interactive SA (BIG.PA) is 5.00%.

	Range	Selected
Cost of equity	93.10% - 124.70%	108.90%
Tax rate	24.70% - 31.50%	28.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.1% - 6.6%	6.4%

WACC

BIG.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	15.49	17.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	93.10%	124.70%

Tax rate	24.70%	31.50%
Debt/Equity ratio	36.92	36.92
Cost of debt	5.00%	5.00%

After-tax WACC	6.1%	6.6%


Selected WACC	6.4%

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 (108.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (15.49) + 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.