FPG.PA WACC - Weighted Average Cost of Capital
The WACC of Union Technologies Informatique Group SA (FPG.PA) is 4.7%.
| Range | Selected | |
| Cost of equity | 5.0% - 6.9% | 5.95% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.7% - 5.7% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.35 | 0.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 6.9% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 1.81 | 1.81 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.7% | 5.7% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FPG.PA | Union Technologies Informatique Group SA | 1.81 | -0.27 | -0.12 |
| BCM.WA | Betacom SA | 0.08 | 0.15 | 0.14 |
| C1V.DE | mVISE AG | 0.51 | 1.32 | 0.96 |
| CYB1.ST | Cyber Security 1 AB | 19.49 | -0.01 | 0 |
| NC5A.DE | NorCom Information Technology AG | 0.2 | -0.3 | -0.26 |
| NTEK B.ST | Novotek AB | 0.04 | 0.08 | 0.07 |
| RED.LS | Reditus Sociedade Gestora de Participacoes Sociais SA | 105.44 | 0.33 | 0 |
| SBE.WA | Softblue SA | 0.07 | 0.05 | 0.05 |
| TLX.WA | Talex SA | 0.07 | 0.16 | 0.16 |
| WIRTEK.CO | Wirtek A/S | 0.16 | 0.02 | 0.02 |
| Low | High | |
| Unlevered beta | 0.01 | 0.06 |
| Relevered beta | 0.03 | 0.13 |
| Adjusted relevered beta | 0.35 | 0.42 |
FPG.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 FPG.PA:
cost_of_equity (5.95%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.35) + 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.