FNAC.PA WACC - Weighted Average Cost of Capital

The WACC of Fnac Darty SA (FNAC.PA) is 5.6%.

The Cost of Equity of Fnac Darty SA (FNAC.PA) is 12.75%.

The Cost of Debt of Fnac Darty SA (FNAC.PA) is 4.25%.

	Range	Selected
Cost of equity	8.90% - 16.60%	12.75%
Tax rate	34.20% - 46.80%	40.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.5% - 6.7%	5.6%

WACC

FNAC.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.01	1.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	16.60%

Tax rate	34.20%	46.80%
Debt/Equity ratio	2.32	2.32
Cost of debt	4.00%	4.50%

After-tax WACC	4.5%	6.7%


Selected WACC	5.6%

FNAC.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 FNAC.PA:

cost_of_equity (12.75%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.01) + 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.