FPN.PA WACC - Weighted Average Cost of Capital

The WACC of Fonciere Paris Nord SA (FPN.PA) is 5.8%.

The Cost of Equity of Fonciere Paris Nord SA (FPN.PA) is 6.20%.

The Cost of Debt of Fonciere Paris Nord SA (FPN.PA) is 5.00%.

	Range	Selected
Cost of equity	5.30% - 7.10%	6.20%
Tax rate	29.80% - 31.80%	30.80%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.0% - 6.5%	5.8%

WACC

FPN.PA WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.2%	6.2%
Adjusted beta	0.52	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.10%

Tax rate	29.80%	31.80%
Debt/Equity ratio	0.19	0.19
Cost of debt	5.00%	5.00%

After-tax WACC	5.0%	6.5%


Selected WACC	5.8%

FPN.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 FPN.PA:

cost_of_equity (6.20%) = risk_free_rate (2.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.52) + 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.