The WACC of Caisse Regionale De Credit Agricole Mutuel Sud Rhone Alpes (CRSU.PA) is 5.5%.
Range | Selected | |
Cost of equity | 6.1% - 8.2% | 7.15% |
Tax rate | 22.9% - 24.1% | 23.5% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.0% - 6.1% | 5.5% |
Category | Low | High |
Long-term bond rate | 3.0% | 3.5% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.53 | 0.61 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.1% | 8.2% |
Tax rate | 22.9% | 24.1% |
Debt/Equity ratio | 0.92 | 0.92 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.0% | 6.1% |
Selected WACC | 5.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CRSU.PA | Caisse Regionale De Credit Agricole Mutuel Sud Rhone Alpes | 0.92 | 0.54 | 0.32 |
CAT31.PA | Caisse Regionale de Credit Agricole Mutuel Toulouse 31 SC | 1.09 | 0.35 | 0.19 |
CMO.PA | Credit Agricole du Morbihan SC | 0.29 | 0.18 | 0.15 |
CRAV.PA | Caisse Regionale de Credit Agricole Mutuel Atlantique Vendee SC | 2.85 | 0.15 | 0.05 |
CRLA.PA | Caisse Regionale de Credit Agricole Mutuel du Languedoc | 1.49 | 0.49 | 0.23 |
CRLO.PA | Caisse Regionale de Credit Agricole Mutuel Loire Haute-Loire | 0.5 | 0.43 | 0.31 |
LOLB.CO | Lollands Bank A/S | 0.1 | 0.33 | 0.3 |
NRDF.CO | Nordfyns Bank A/S | 0.16 | 0.17 | 0.15 |
SGKN.SW | St Galler Kantonalbank AG | 3.26 | 0.3 | 0.09 |
VVL.OL | Voss Veksel og Landmandsbank ASA | 1.2 | 0.52 | 0.27 |
Low | High | |
Unlevered beta | 0.18 | 0.25 |
Relevered beta | 0.3 | 0.42 |
Adjusted relevered beta | 0.53 | 0.61 |
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 CRSU.PA:
cost_of_equity (7.15%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.53) + 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.