ELIOR.PA WACC - Weighted Average Cost of Capital
The WACC of Elior Group SA (ELIOR.PA) is 6.9%.
| Range | Selected | |
| Cost of equity | 8.0% - 10.7% | 9.35% |
| Tax rate | 17.2% - 22.8% | 20% |
| Cost of debt | 5.0% - 8.2% | 6.6% |
| WACC | 5.7% - 8.0% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.85 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 10.7% |
| Tax rate | 17.2% | 22.8% |
| Debt/Equity ratio | 1.54 | 1.54 |
| Cost of debt | 5.0% | 8.2% |
| After-tax WACC | 5.7% | 8.0% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ELIOR.PA | Elior Group SA | 1.54 | 1.04 | 0.47 |
| AGL.MI | Autogrill SpA | 0.83 | 0.41 | 0.25 |
| DOM.L | Domino's Pizza Group PLC | 0.53 | 0.9 | 0.64 |
| EAT.WA | Amrest Holdings SE | 1.88 | 0.58 | 0.24 |
| IBS.LS | Ibersol SGPS SA | 0.77 | 0.1 | 0.06 |
| JDW.L | J D Wetherspoon PLC | 1.44 | 0.88 | 0.42 |
| MAB.L | Mitchells & Butlers PLC | 0.98 | 1.01 | 0.58 |
| MARS.L | Marston's PLC | 5.06 | 1.48 | 0.3 |
| RTN.L | Restaurant Group PLC | 1.22 | 0.76 | 0.39 |
| SSPG.L | SSP Group PLC | 1.39 | 1.23 | 0.59 |
| Low | High | |
| Unlevered beta | 0.36 | 0.44 |
| Relevered beta | 0.78 | 0.97 |
| Adjusted relevered beta | 0.85 | 0.98 |
ELIOR.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 ELIOR.PA:
cost_of_equity (9.35%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.85) + 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.