FLY.PA WACC - Weighted Average Cost of Capital

The WACC of Societe Fonciere Lyonnaise SA (FLY.PA) is 6.0%.

The Cost of Equity of Societe Fonciere Lyonnaise SA (FLY.PA) is 7.25%.

The Cost of Debt of Societe Fonciere Lyonnaise SA (FLY.PA) is 4.60%.

	Range	Selected
Cost of equity	5.90% - 8.60%	7.25%
Tax rate	1.40% - 2.50%	1.95%
Cost of debt	4.00% - 5.20%	4.60%
WACC	5.0% - 7.0%	6.0%

WACC

FLY.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.5	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	8.60%

Tax rate	1.40%	2.50%
Debt/Equity ratio	0.81	0.81
Cost of debt	4.00%	5.20%

After-tax WACC	5.0%	7.0%


Selected WACC	6.0%

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 (0.5) + 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.