CRAP.PA WACC - Weighted Average Cost of Capital
The WACC of Caisse regionale de Credit Agricole Mutuel Alpes Provence (CRAP.PA) is 5.4%.
| Range | Selected | |
| Cost of equity | 7.1% - 9.2% | 8.15% |
| Tax rate | 24.0% - 26.7% | 25.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 5.8% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.7 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 9.2% |
| Tax rate | 24.0% | 26.7% |
| Debt/Equity ratio | 1.62 | 1.62 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 5.8% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRAP.PA | Caisse regionale de Credit Agricole Mutuel Alpes Provence | 1.62 | 0.24 | 0.11 |
| CAT31.PA | Caisse Regionale de Credit Agricole Mutuel Toulouse 31 SC | 1.1 | 0.38 | 0.21 |
| CMO.PA | Credit Agricole du Morbihan SC | 0.29 | 0.38 | 0.31 |
| CRAV.PA | Caisse Regionale de Credit Agricole Mutuel Atlantique Vendee SC | 2.76 | 0.13 | 0.04 |
| CRLA.PA | Caisse Regionale de Credit Agricole Mutuel du Languedoc | 0.91 | 0.7 | 0.42 |
| CRLO.PA | Caisse Regionale de Credit Agricole Mutuel Loire Haute-Loire | 0.63 | 0.41 | 0.28 |
| CRSU.PA | Caisse Regionale De Credit Agricole Mutuel Sud Rhone Alpes | 1.21 | 0.62 | 0.32 |
| LOLB.CO | Lollands Bank A/S | 0.1 | 0.38 | 0.36 |
| SGKN.SW | St Galler Kantonalbank AG | 3.26 | 0.34 | 0.1 |
| VVL.OL | Voss Veksel og Landmandsbank ASA | 1.27 | 0.56 | 0.28 |
| Low | High | |
| Unlevered beta | 0.25 | 0.29 |
| Relevered beta | 0.55 | 0.66 |
| Adjusted relevered beta | 0.7 | 0.77 |
CRAP.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 CRAP.PA:
cost_of_equity (8.15%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.7) + 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.