GAM.PA
Gaumont SA
Price:  
80.5 
EUR
Volume:  
14
France | Entertainment

GAM.PA WACC - Weighted Average Cost of Capital

The WACC of Gaumont SA (GAM.PA) is 5.7%.

The Cost of Equity of Gaumont SA (GAM.PA) is 5.75%.
The Cost of Debt of Gaumont SA (GAM.PA) is 5%.

RangeSelected
Cost of equity5.0% - 6.5%5.75%
Tax rate5.0% - 6.6%5.8%
Cost of debt5.0% - 5.0%5%
WACC5.0% - 6.5%5.7%
WACC

GAM.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.350.37
Additional risk adjustments0.0%0.5%
Cost of equity5.0%6.5%
Tax rate5.0%6.6%
Debt/Equity ratio
0.050.05
Cost of debt5.0%5.0%
After-tax WACC5.0%6.5%
Selected WACC5.7%

GAM.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 GAM.PA:

cost_of_equity (5.75%) = 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.