GOE.PA WACC - Weighted Average Cost of Capital

The WACC of Groupe Gorge SA (GOE.PA) is 5.5%.

The Cost of Equity of Groupe Gorge SA (GOE.PA) is 8.20%.

The Cost of Debt of Groupe Gorge SA (GOE.PA) is 4.25%.

	Range	Selected
Cost of equity	6.40% - 10.00%	8.20%
Tax rate	25.90% - 27.10%	26.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.6% - 6.5%	5.5%

WACC

GOE.PA WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	6.2%	7.2%
Adjusted beta	0.53	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	10.00%

Tax rate	25.90%	27.10%
Debt/Equity ratio	1.11	1.11
Cost of debt	4.00%	4.50%

After-tax WACC	4.6%	6.5%


Selected WACC	5.5%

GOE.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 GOE.PA:

cost_of_equity (8.20%) = risk_free_rate (3.35%) + equity_risk_premium (6.70%) * adjusted_beta (0.53) + 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.