BUR.PA
Burelle SA
Price:  
361.00 
EUR
Volume:  
15.00
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BUR.PA WACC - Weighted Average Cost of Capital

The WACC of Burelle SA (BUR.PA) is 5.7%.

The Cost of Equity of Burelle SA (BUR.PA) is 14.65%.
The Cost of Debt of Burelle SA (BUR.PA) is 4.60%.

Range Selected
Cost of equity 11.70% - 17.60% 14.65%
Tax rate 25.80% - 28.00% 26.90%
Cost of debt 4.00% - 5.20% 4.60%
WACC 4.8% - 6.6% 5.7%
WACC

BUR.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.5 2
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.70% 17.60%
Tax rate 25.80% 28.00%
Debt/Equity ratio 3.93 3.93
Cost of debt 4.00% 5.20%
After-tax WACC 4.8% 6.6%
Selected WACC 5.7%

BUR.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 BUR.PA:

cost_of_equity (14.65%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.5) + 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.