FLY.PA WACC - Weighted Average Cost of Capital
The WACC of Societe Fonciere Lyonnaise SA (FLY.PA) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.4% | 7.25% |
| Tax rate | 1.4% - 2.5% | 1.95% |
| Cost of debt | 4.0% - 5.2% | 4.6% |
| WACC | 5.1% - 6.9% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.53 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.4% |
| Tax rate | 1.4% | 2.5% |
| Debt/Equity ratio | 0.79 | 0.79 |
| Cost of debt | 4.0% | 5.2% |
| After-tax WACC | 5.1% | 6.9% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FLY.PA | Societe Fonciere Lyonnaise SA | 0.79 | 0.02 | 0.01 |
| AOX.DE | alstria office REIT AG | 2.35 | -0.19 | -0.06 |
| BEFB.BR | Befimmo SA | 0.97 | 0.46 | 0.24 |
| COL.MC | Inmobiliaria Colonial SOCIMI SA | 1.33 | 0.59 | 0.26 |
| DLN.L | Derwent London PLC | 0.65 | 0.69 | 0.42 |
| GPOR.L | Great Portland Estates PLC | 0.29 | 0.75 | 0.58 |
| GWI.L | Globalworth Real Estate Investments Ltd | 1.9 | 0.2 | 0.07 |
| HBRN.IR | Hibernia REIT PLC | 0.28 | 0.36 | 0.28 |
| WKP.L | Workspace Group PLC | 1.09 | 0.94 | 0.45 |
| YZBL.MC | Zambal Spain Socimi SA | 0.13 | 0.03 | 0.03 |
| Low | High | |
| Unlevered beta | 0.17 | 0.27 |
| Relevered beta | 0.3 | 0.48 |
| Adjusted relevered beta | 0.53 | 0.65 |
FLY.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 FLY.PA:
cost_of_equity (7.25%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.53) + 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.