ENGI.PA
Engie SA
Price:  
18.03 
EUR
Volume:  
5,076,024.00
France | Multi-Utilities
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ENGI.PA WACC - Weighted Average Cost of Capital

The WACC of Engie SA (ENGI.PA) is 5.3%.

The Cost of Equity of Engie SA (ENGI.PA) is 8.15%.
The Cost of Debt of Engie SA (ENGI.PA) is 4.25%.

Range Selected
Cost of equity 7.10% - 9.20% 8.15%
Tax rate 29.00% - 31.10% 30.05%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.8% - 5.9% 5.3%
WACC

ENGI.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.7 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.20%
Tax rate 29.00% 31.10%
Debt/Equity ratio 1.18 1.18
Cost of debt 4.00% 4.50%
After-tax WACC 4.8% 5.9%
Selected WACC 5.3%

ENGI.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 ENGI.PA:

cost_of_equity (8.15%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.7) + 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.