The WACC of Casino Guichard Perrachon SA (CO.PA) is 4.8%.
Range | Selected | |
Cost of equity | 5.4% - 19.4% | 12.4% |
Tax rate | 25.9% - 27.1% | 26.5% |
Cost of debt | 5.0% - 7.0% | 6% |
WACC | 3.8% - 5.8% | 4.8% |
Category | Low | High |
Long-term bond rate | 3.0% | 3.5% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.41 | 2.25 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.4% | 19.4% |
Tax rate | 25.9% | 27.1% |
Debt/Equity ratio | 19.6 | 19.6 |
Cost of debt | 5.0% | 7.0% |
After-tax WACC | 3.8% | 5.8% |
Selected WACC | 4.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CO.PA | Casino Guichard Perrachon SA | 19.6 | 1.67 | 0.11 |
COLR.BR | Etablissementen Franz Colruyt NV | 0.22 | -0.71 | -0.61 |
EURS.PA | Fonciere Euris SA | 11027.55 | 1.69 | 0 |
FNTS.PA | Finatis SA | 130.82 | 1.22 | 0.01 |
JMT.LS | Jeronimo Martins SGPS SA | 0.34 | 0.85 | 0.68 |
KESKOB.HE | Kesko Oyj | 0.4 | 0.39 | 0.3 |
MLGRC.PA | Groupe Carnivor SA | 2.52 | -0.11 | -0.04 |
MRW.L | WM Morrison Supermarkets PLC | 0.49 | 0.62 | 0.46 |
SBRY.L | J Sainsbury PLC | 1.01 | 0.97 | 0.56 |
TKM1T.TL | Tallinna Kaubamaja Grupp AS | 0.85 | -0.1 | -0.06 |
Low | High | |
Unlevered beta | 0.01 | 0.19 |
Relevered beta | 0.12 | 2.87 |
Adjusted relevered beta | 0.41 | 2.25 |
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 CO.PA:
cost_of_equity (12.40%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.41) + 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.