ELIS.PA
Elis SA
Price:  
24.8 
EUR
Volume:  
293,893
France | Commercial Services & Supplies

ELIS.PA WACC - Weighted Average Cost of Capital

The WACC of Elis SA (ELIS.PA) is 6.2%.

The Cost of Equity of Elis SA (ELIS.PA) is 8.55%.
The Cost of Debt of Elis SA (ELIS.PA) is 4.25%.

RangeSelected
Cost of equity6.9% - 10.2%8.55%
Tax rate29.1% - 31.0%30.05%
Cost of debt4.0% - 4.5%4.25%
WACC5.2% - 7.2%6.2%
WACC

ELIS.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.670.92
Additional risk adjustments0.0%0.5%
Cost of equity6.9%10.2%
Tax rate29.1%31.0%
Debt/Equity ratio
0.730.73
Cost of debt4.0%4.5%
After-tax WACC5.2%7.2%
Selected WACC6.2%

ELIS.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 ELIS.PA:

cost_of_equity (8.55%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.67) + 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.