FNTS.PA WACC - Weighted Average Cost of Capital

The WACC of Finatis SA (FNTS.PA) is 4.5%.

The Cost of Equity of Finatis SA (FNTS.PA) is 66.10%.

The Cost of Debt of Finatis SA (FNTS.PA) is 5.50%.

	Range	Selected
Cost of equity	21.80% - 110.40%	66.10%
Tax rate	25.90% - 27.10%	26.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.1% - 5.9%	4.5%

WACC

FNTS.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	3.22	15.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.80%	110.40%

Tax rate	25.90%	27.10%
Debt/Equity ratio	130.82	130.82
Cost of debt	4.00%	7.00%

After-tax WACC	3.1%	5.9%


Selected WACC	4.5%

FNTS.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 FNTS.PA:

cost_of_equity (66.10%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (3.22) + 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.