CFI.PA WACC - Weighted Average Cost of Capital
The WACC of CFI-Compagnie Fonciere Internationale SCA (CFI.PA) is 5.3%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.7% | 5.8% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 6.0% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.32 | 0.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 6.7% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 0.29 | 0.29 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 6.0% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CFI.PA | CFI-Compagnie Fonciere Internationale SCA | 0.29 | -2.49 | -2.05 |
| ALNA.L | Alina Holdings PLC | 0.35 | 0.46 | 0.36 |
| ARG.PA | Argan SA | 1.23 | 0.53 | 0.28 |
| BYG.L | Big Yellow Group PLC | 0.22 | 0.58 | 0.5 |
| FPN.PA | Fonciere Paris Nord SA | 0.19 | 0.21 | 0.19 |
| YADV.MC | ADVERO Properties Socimi SA | 0.18 | -0.08 | -0.07 |
| YARP.MC | Arrienda Rental Properties SOCIMI SA | 0.27 | -0.03 | -0.02 |
| YBAR.MC | Barcino Property SOCIMI SA | 0.32 | -0.07 | -0.06 |
| YMEI.MC | Mercal Inmuebles SOCIMI SA | 0.47 | 0 | 0 |
| YMRE.MC | Meridia Real Estate III Socimi SA | 1.26 | 0.02 | 0.01 |
| YSRR.MC | Serrano 61 Desarrollo SOCIMI SA | 0.72 | -0.03 | -0.02 |
| Low | High | |
| Unlevered beta | -0.02 | 0.01 |
| Relevered beta | -0.01 | 0.1 |
| Adjusted relevered beta | 0.32 | 0.4 |
CFI.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 CFI.PA:
cost_of_equity (5.80%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.32) + 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.