EIFF.PA
Societe de la Tour Eiffel SA
Price:  
4.99 
EUR
Volume:  
552.00
France | Equity Real Estate Investment Trusts (REITs)
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EIFF.PA WACC - Weighted Average Cost of Capital

The WACC of Societe de la Tour Eiffel SA (EIFF.PA) is 9.1%.

The Cost of Equity of Societe de la Tour Eiffel SA (EIFF.PA) is 5.90%.
The Cost of Debt of Societe de la Tour Eiffel SA (EIFF.PA) is 12.00%.

Range Selected
Cost of equity 5.00% - 6.80% 5.90%
Tax rate 1.70% - 3.10% 2.40%
Cost of debt 4.00% - 20.00% 12.00%
WACC 4.4% - 13.7% 9.1%
WACC

EIFF.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.34 0.41
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 6.80%
Tax rate 1.70% 3.10%
Debt/Equity ratio 1.21 1.21
Cost of debt 4.00% 20.00%
After-tax WACC 4.4% 13.7%
Selected WACC 9.1%

EIFF.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 EIFF.PA:

cost_of_equity (5.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.34) + 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.