GDS.PA
Ramsay Generale de Sante SA
Price:  
9.70 
EUR
Volume:  
199.00
France | Health Care Providers & Services
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GDS.PA WACC - Weighted Average Cost of Capital

The WACC of Ramsay Generale de Sante SA (GDS.PA) is 3.9%.

The Cost of Equity of Ramsay Generale de Sante SA (GDS.PA) is 7.10%.
The Cost of Debt of Ramsay Generale de Sante SA (GDS.PA) is 4.25%.

Range Selected
Cost of equity 5.50% - 8.70% 7.10%
Tax rate 28.00% - 29.60% 28.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.4% - 4.3% 3.9%
WACC

GDS.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.43 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.70%
Tax rate 28.00% 29.60%
Debt/Equity ratio 3.78 3.78
Cost of debt 4.00% 4.50%
After-tax WACC 3.4% 4.3%
Selected WACC 3.9%

GDS.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 GDS.PA:

cost_of_equity (7.10%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.43) + 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.