The WACC of Delta Plus Group SA (DLTA.PA) is 6.7%.
Range | Selected | |
Cost of equity | 6.1% - 8.8% | 7.45% |
Tax rate | 22.5% - 23.1% | 22.8% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.6% - 7.8% | 6.7% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 5.2% | 6.2% |
Adjusted beta | 0.67 | 0.83 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.1% | 8.8% |
Tax rate | 22.5% | 23.1% |
Debt/Equity ratio | 0.26 | 0.26 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.6% | 7.8% |
Selected WACC | 6.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
DLTA.PA | Delta Plus Group SA | 0.26 | 0.78 | 0.65 |
ADEL.IS | Adel Kalemcilik Ticaret ve Sanayi AS | 0.53 | 1.37 | 0.97 |
BB.PA | Societe BIC SA | 0.15 | 0.58 | 0.52 |
DROME.AT | Dromeas Office Furniture Industry SA | 1.83 | 1.19 | 0.49 |
FILA.MI | FILA Fabbrica Italiana Lapis ed Affini SpA | 0.85 | 0.64 | 0.39 |
FOU.BR | Fountain SA | 0.81 | 0.58 | 0.36 |
GENTS.IS | Gentas Dekoratif Yuzeyler Sanayi ve Ticaret AS | 0.05 | 0.98 | 0.94 |
ROS.MI | Rosss SpA | 1.61 | 0.51 | 0.23 |
SAMAT.IS | Saray Matbaacilik Kagitcilik Kirtasiyecilik Ticaret ve Sanayi AS | 0.1 | 1.56 | 1.45 |
SATOK.AT | Sato Office and Houseware Supplies SA | 20.28 | 0.51 | 0.03 |
Low | High | |
Unlevered beta | 0.45 | 0.57 |
Relevered beta | 0.51 | 0.75 |
Adjusted relevered beta | 0.67 | 0.83 |
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 DLTA.PA:
cost_of_equity (7.45%) = risk_free_rate (2.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.67) + 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.