GDS.PA WACC - Weighted Average Cost of Capital

The WACC of Ramsay Generale de Sante SA (GDS.PA) is 4.1%.

The Cost of Equity of Ramsay Generale de Sante SA (GDS.PA) is 7.70%.

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

	Range	Selected
Cost of equity	5.90% - 9.50%	7.70%
Tax rate	20.30% - 27.70%	24.00%
Cost of debt	4.00% - 4.50%	4.25%
WACC	3.7% - 4.5%	4.1%

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	0.49	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	9.50%

Tax rate	20.30%	27.70%
Debt/Equity ratio	4.11	4.11
Cost of debt	4.00%	4.50%

After-tax WACC	3.7%	4.5%


Selected WACC	4.1%

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 (7.70%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.49) + 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.