CO.PA WACC - Weighted Average Cost of Capital
The WACC of Casino Guichard Perrachon SA (CO.PA) is 4.8%.
| Range | Selected | |
| Cost of equity | 5.3% - 18.6% | 11.95% |
| 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 | 0.4 | 2.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 18.6% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 17.69 | 17.69 |
| 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 | 17.69 | 1.64 | 0.12 |
| COLR.BR | Etablissementen Franz Colruyt NV | 0.21 | -0.72 | -0.62 |
| 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 | 0.35 | 0.9 | 0.72 |
| KESKOB.HE | Kesko Oyj | 0.4 | 0.4 | 0.31 |
| 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 | 1.04 | 0.6 |
| TKM1T.TL | Tallinna Kaubamaja Grupp AS | 0.84 | -0.06 | -0.04 |
| Low | High | |
| Unlevered beta | 0.01 | 0.19 |
| Relevered beta | 0.1 | 2.7 |
| Adjusted relevered beta | 0.4 | 2.14 |
CO.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 CO.PA:
cost_of_equity (11.95%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.4) + 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.