GID.PA WACC - Weighted Average Cost of Capital
The WACC of Egide SA (GID.PA) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.3% | 7.2% |
| Tax rate | 28.4% - 30.0% | 29.2% |
| Cost of debt | 4.0% - 6.9% | 5.45% |
| WACC | 4.8% - 6.9% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 6.2% | 7.2% |
| Adjusted beta | 0.48 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.3% |
| Tax rate | 28.4% | 30.0% |
| Debt/Equity ratio | 0.69 | 0.69 |
| Cost of debt | 4.0% | 6.9% |
| After-tax WACC | 4.8% | 6.9% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GID.PA | Egide SA | 0.69 | 0.68 | 0.46 |
| ALI2S.PA | I2S SA | 0.25 | -0.24 | -0.2 |
| ALW.MI | algoWatt SpA | 1.45 | 0.41 | 0.2 |
| APN.WA | Aplisens SA | 1.19 | 0.05 | 0.02 |
| PIP.L | Pipehawk PLC | 11.55 | 0.45 | 0.05 |
| SON.WA | Sonel SA | 0.01 | 0.72 | 0.72 |
| UVEL.L | UniVision Engineering Ltd | 5.05 | -1.78 | -0.39 |
| V3S.DE | Vectron Systems AG | 0.26 | 0.59 | 0.49 |
| WPAY.ST | Westpay AB | 0.04 | 0.74 | 0.72 |
| WSG.L | Westminster Group PLC | 0.23 | 0.82 | 0.71 |
| Low | High | |
| Unlevered beta | 0.14 | 0.47 |
| Relevered beta | 0.22 | 0.37 |
| Adjusted relevered beta | 0.48 | 0.58 |
GID.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 GID.PA:
cost_of_equity (7.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.70%) * adjusted_beta (0.48) + 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.