EXE.PA WACC - Weighted Average Cost of Capital

The WACC of Exel Industries SA (EXE.PA) is 7.2%.

The Cost of Equity of Exel Industries SA (EXE.PA) is 10.15%.

The Cost of Debt of Exel Industries SA (EXE.PA) is 6.10%.

	Range	Selected
Cost of equity	7.70% - 12.60%	10.15%
Tax rate	26.40% - 27.80%	27.10%
Cost of debt	4.00% - 8.20%	6.10%
WACC	5.3% - 9.2%	7.2%

WACC

EXE.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.81	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	12.60%

Tax rate	26.40%	27.80%
Debt/Equity ratio	1.04	1.04
Cost of debt	4.00%	8.20%

After-tax WACC	5.3%	9.2%


Selected WACC	7.2%

EXE.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 EXE.PA:

cost_of_equity (10.15%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.81) + 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.