BUR.PA WACC - Weighted Average Cost of Capital
The WACC of Burelle SA (BUR.PA) is 5.7%.
| Range | Selected | |
| Cost of equity | 11.2% - 17.2% | 14.2% |
| Tax rate | 25.8% - 28.0% | 26.9% |
| Cost of debt | 4.0% - 5.2% | 4.6% |
| WACC | 4.7% - 6.6% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.42 | 1.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.2% | 17.2% |
| Tax rate | 25.8% | 28.0% |
| Debt/Equity ratio | 3.71 | 3.71 |
| Cost of debt | 4.0% | 5.2% |
| After-tax WACC | 4.7% | 6.6% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BUR.PA | Burelle SA | 3.71 | 0.58 | 0.16 |
| AUTN.SW | Autoneum Holding AG | 0.6 | 1.11 | 0.77 |
| BRE.MI | Freni Brembo SpA | 0.29 | 0.91 | 0.75 |
| GEST.MC | Gestamp Automocion SA | 1.77 | 0.65 | 0.28 |
| HLE.DE | HELLA GmbH & Co KGaA | 0.12 | 0.4 | 0.37 |
| KENDR.AS | Kendrion NV | 0.64 | 1.02 | 0.7 |
| KOA.OL | Kongsberg Automotive ASA | 1.61 | 0.77 | 0.36 |
| LR.MI | Landi Renzo SpA | 1.07 | 1.2 | 0.67 |
| POM.PA | Compagnie Plastic Omnium SE | 1.71 | 1.18 | 0.53 |
| SHA.DE | Schaeffler AG | 1.19 | 1.18 | 0.63 |
| Low | High | |
| Unlevered beta | 0.46 | 0.65 |
| Relevered beta | 1.63 | 2.39 |
| Adjusted relevered beta | 1.42 | 1.93 |
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 (14.20%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.42) + 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.