BUR.PA
Burelle SA
Price:  
371 
EUR
Volume:  
58
France | Auto Components

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 14.2%.
The Cost of Debt of Burelle SA (BUR.PA) is 4.6%.

RangeSelected
Cost of equity11.2% - 17.2%14.2%
Tax rate25.8% - 28.0%26.9%
Cost of debt4.0% - 5.2%4.6%
WACC4.7% - 6.6%5.7%
WACC

BUR.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta1.421.93
Additional risk adjustments0.0%0.5%
Cost of equity11.2%17.2%
Tax rate25.8%28.0%
Debt/Equity ratio
3.713.71
Cost of debt4.0%5.2%
After-tax WACC4.7%6.6%
Selected WACC5.7%

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 (14.20%) = 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.