EURS.PA WACC - Weighted Average Cost of Capital

The WACC of Fonciere Euris SA (EURS.PA) is 8.4%.

The Cost of Equity of Fonciere Euris SA (EURS.PA) is 1,679.50%.

The Cost of Debt of Fonciere Euris SA (EURS.PA) is 12.00%.

	Range	Selected
Cost of equity	1,059.50% - 2,299.50%	1,679.50%
Tax rate	24.60% - 32.60%	28.60%
Cost of debt	4.00% - 20.00%	12.00%
WACC	3.1% - 13.7%	8.4%

WACC

EURS.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	181.53	336.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	1,059.50%	2,299.50%

Tax rate	24.60%	32.60%
Debt/Equity ratio	11027.55	11027.55
Cost of debt	4.00%	20.00%

After-tax WACC	3.1%	13.7%


Selected WACC	8.4%

EURS.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 EURS.PA:

cost_of_equity (1,679.50%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (181.53) + 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.