COUR.PA WACC - Weighted Average Cost of Capital

The WACC of Courtois SA (COUR.PA) is 5.3%.

The Cost of Equity of Courtois SA (COUR.PA) is 5.60%.

The Cost of Debt of Courtois SA (COUR.PA) is 5.50%.

	Range	Selected
Cost of equity	4.90% - 6.30%	5.60%
Tax rate	22.80% - 24.50%	23.65%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.5% - 6.1%	5.3%

WACC

COUR.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.33	0.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	6.30%

Tax rate	22.80%	24.50%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.00%	7.00%

After-tax WACC	4.5%	6.1%


Selected WACC	5.3%

COUR.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 COUR.PA:

cost_of_equity (5.60%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.33) + 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.