GBT.PA WACC - Weighted Average Cost of Capital

The WACC of Guerbet SA (GBT.PA) is 5.6%.

The Cost of Equity of Guerbet SA (GBT.PA) is 9.85%.

The Cost of Debt of Guerbet SA (GBT.PA) is 5.50%.

	Range	Selected
Cost of equity	7.50% - 12.20%	9.85%
Tax rate	21.90% - 29.00%	25.45%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.3% - 6.9%	5.6%

WACC

GBT.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.77	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	12.20%

Tax rate	21.90%	29.00%
Debt/Equity ratio	2.67	2.67
Cost of debt	4.00%	7.00%

After-tax WACC	4.3%	6.9%


Selected WACC	5.6%

GBT.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 GBT.PA:

cost_of_equity (9.85%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.77) + 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.