EUR.PA
Euro Ressources SA
Price:  
3.5 
EUR
Volume:  
526,593
France | Metals & Mining

EUR.PA WACC - Weighted Average Cost of Capital

The WACC of Euro Ressources SA (EUR.PA) is 4.7%.

The Cost of Equity of Euro Ressources SA (EUR.PA) is 6.1%.
The Cost of Debt of Euro Ressources SA (EUR.PA) is 5%.

RangeSelected
Cost of equity5.1% - 7.1%6.1%
Tax rate31.5% - 33.3%32.4%
Cost of debt5.0% - 5.0%5%
WACC4.3% - 5.2%4.7%
WACC

EUR.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.370.46
Additional risk adjustments0.0%0.5%
Cost of equity5.1%7.1%
Tax rate31.5%33.3%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC4.3%5.2%
Selected WACC4.7%

EUR.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 EUR.PA:

cost_of_equity (6.10%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.37) + 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.