FGR.PA WACC - Weighted Average Cost of Capital

The WACC of Eiffage SA (FGR.PA) is 7.5%.

The Cost of Equity of Eiffage SA (FGR.PA) is 13.70%.

The Cost of Debt of Eiffage SA (FGR.PA) is 4.25%.

	Range	Selected
Cost of equity	10.70% - 16.70%	13.70%
Tax rate	27.20% - 28.00%	27.60%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.2% - 8.9%	7.5%

WACC

FGR.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.33	1.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	16.70%

Tax rate	27.20%	28.00%
Debt/Equity ratio	1.4	1.4
Cost of debt	4.00%	4.50%

After-tax WACC	6.2%	8.9%


Selected WACC	7.5%

FGR.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 FGR.PA:

cost_of_equity (13.70%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.33) + 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.