DSY.PA
Dassault Systemes SE
Price:  
33.36 
EUR
Volume:  
2,222,995.00
France | Software
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DSY.PA WACC - Weighted Average Cost of Capital

The WACC of Dassault Systemes SE (DSY.PA) is 8.5%.

The Cost of Equity of Dassault Systemes SE (DSY.PA) is 8.90%.
The Cost of Debt of Dassault Systemes SE (DSY.PA) is 4.25%.

Range Selected
Cost of equity 7.60% - 10.20% 8.90%
Tax rate 21.50% - 23.70% 22.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.3% - 9.8% 8.5%
WACC

DSY.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.79 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.20%
Tax rate 21.50% 23.70%
Debt/Equity ratio 0.07 0.07
Cost of debt 4.00% 4.50%
After-tax WACC 7.3% 9.8%
Selected WACC 8.5%

DSY.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 DSY.PA:

cost_of_equity (8.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.79) + 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.