EKI.PA
Ekinops SA
Price:  
3.33 
EUR
Volume:  
24,130.00
France | Communications Equipment
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EKI.PA WACC - Weighted Average Cost of Capital

The WACC of Ekinops SA (EKI.PA) is 7.4%.

The Cost of Equity of Ekinops SA (EKI.PA) is 8.55%.
The Cost of Debt of Ekinops SA (EKI.PA) is 5.50%.

Range Selected
Cost of equity 7.40% - 9.70% 8.55%
Tax rate 16.50% - 29.80% 23.15%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.3% - 8.5% 7.4%
WACC

EKI.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.75 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.70%
Tax rate 16.50% 29.80%
Debt/Equity ratio 0.35 0.35
Cost of debt 4.00% 7.00%
After-tax WACC 6.3% 8.5%
Selected WACC 7.4%

EKI.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 EKI.PA:

cost_of_equity (8.55%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.75) + 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.