FII.PA
Lisi SA
Price:  
28.30 
EUR
Volume:  
5,861.00
France | Aerospace & Defense
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FII.PA WACC - Weighted Average Cost of Capital

The WACC of Lisi SA (FII.PA) is 7.2%.

The Cost of Equity of Lisi SA (FII.PA) is 9.30%.
The Cost of Debt of Lisi SA (FII.PA) is 4.25%.

Range Selected
Cost of equity 7.80% - 10.80% 9.30%
Tax rate 26.70% - 26.90% 26.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.1% - 8.3% 7.2%
WACC

FII.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.83 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.80%
Tax rate 26.70% 26.90%
Debt/Equity ratio 0.52 0.52
Cost of debt 4.00% 4.50%
After-tax WACC 6.1% 8.3%
Selected WACC 7.2%

FII.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 FII.PA:

cost_of_equity (9.30%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.83) + 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.