GBT.PA WACC - Weighted Average Cost of Capital

The WACC of Guerbet SA (GBT.PA) is 6.9%.

The Cost of Equity of Guerbet SA (GBT.PA) is 9.50%.

The Cost of Debt of Guerbet SA (GBT.PA) is 7.75%.

	Range	Selected
Cost of equity	6.60% - 12.40%	9.50%
Tax rate	24.00% - 29.00%	26.50%
Cost of debt	4.00% - 11.50%	7.75%
WACC	4.3% - 9.6%	6.9%

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	0.62	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	12.40%

Tax rate	24.00%	29.00%
Debt/Equity ratio	1.95	1.95
Cost of debt	4.00%	11.50%

After-tax WACC	4.3%	9.6%


Selected WACC	6.9%

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 (9.50%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.62) + 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.