GOE.PA WACC - Weighted Average Cost of Capital
The WACC of Groupe Gorge SA (GOE.PA) is 5.5%.
| Range | Selected | |
| Cost of equity | 6.4% - 10.0% | 8.2% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 6.5% | 5.5% |
| 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 | 6.4% | 10.0% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 1.11 | 1.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 6.5% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GOE.PA | Groupe Gorge SA | 1.11 | 1.28 | 0.71 |
| AAG.DE | Aumann AG | 0.04 | 0.4 | 0.39 |
| ADVN.SW | Adval Tech Holding AG | 0.3 | 0.45 | 0.37 |
| AKVA.OL | Akva Group ASA | 0.6 | 0.59 | 0.41 |
| FVI.MI | Fervi SpA | 0.22 | 0.32 | 0.28 |
| JEN.BR | Jensen Group NV | 0.13 | 0.46 | 0.42 |
| LSC.L | London Security PLC | 0.02 | -0.26 | -0.26 |
| MTG.SW | Meier Tobler Group AG | 0.06 | 0.76 | 0.73 |
| RSL2.DE | R Stahl AG | 0.51 | 0.45 | 0.33 |
| STGN.SW | Starrag Group Holding AG | 0.21 | 0.64 | 0.55 |
| Low | High | |
| Unlevered beta | 0.38 | 0.41 |
| Relevered beta | 0.3 | 0.72 |
| Adjusted relevered beta | 0.53 | 0.81 |
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.