ELIOR.PA WACC - Weighted Average Cost of Capital

The WACC of Elior Group SA (ELIOR.PA) is 7.8%.

The Cost of Equity of Elior Group SA (ELIOR.PA) is 11.65%.

The Cost of Debt of Elior Group SA (ELIOR.PA) is 7.35%.

	Range	Selected
Cost of equity	10.30% - 13.00%	11.65%
Tax rate	17.40% - 27.30%	22.35%
Cost of debt	6.50% - 8.20%	7.35%
WACC	7.2% - 8.5%	7.8%

WACC

ELIOR.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.25	1.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	13.00%

Tax rate	17.40%	27.30%
Debt/Equity ratio	1.77	1.77
Cost of debt	6.50%	8.20%

After-tax WACC	7.2%	8.5%


Selected WACC	7.8%

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 (11.65%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.25) + 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.