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 7.05%.

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

	Range	Selected
Cost of equity	5.70% - 8.40%	7.05%
Tax rate	28.00% - 29.60%	28.80%
Cost of debt	4.00% - 4.50%	4.25%
WACC	3.5% - 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	0.46	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	8.40%

Tax rate	28.00%	29.60%
Debt/Equity ratio	3.64	3.64
Cost of debt	4.00%	4.50%

After-tax WACC	3.5%	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 (7.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.46) + 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.