CDA.PA WACC - Weighted Average Cost of Capital
The WACC of Compagnie des Alpes SA (CDA.PA) is 5.2%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.6% | 8.25% |
| Tax rate | 18.7% - 23.5% | 21.1% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 5.7% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.67 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.6% |
| Tax rate | 18.7% | 23.5% |
| Debt/Equity ratio | 1.66 | 1.66 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 5.7% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CDA.PA | Compagnie des Alpes SA | 1.66 | 0.74 | 0.32 |
| ATIC.ST | Actic Group AB | 1.88 | 1.34 | 0.54 |
| BFIT.AS | Basic Fit NV | 2.11 | 0.83 | 0.31 |
| BOWL.L | Hollywood Bowl Group PLC | 0.43 | 1.44 | 1.07 |
| GYM.L | GYM Group PLC | 1.5 | 0.43 | 0.2 |
| MLCMB.PA | Compagnie du Mont Blanc SA | 1.33 | 0.37 | 0.18 |
| SATS.OL | Sats ASA | 0.92 | 0.3 | 0.17 |
| SKIS B.ST | SkiStar AB | 0.32 | 0.58 | 0.46 |
| TEG.L | Ten Entertainment Group PLC | 0.71 | 0.35 | 0.23 |
| TIV.CO | Tivoli A/S | 0.09 | -0.01 | -0.01 |
| Low | High | |
| Unlevered beta | 0.21 | 0.32 |
| Relevered beta | 0.51 | 0.73 |
| Adjusted relevered beta | 0.67 | 0.82 |
CDA.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 CDA.PA:
cost_of_equity (8.25%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.67) + 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.