GRVO.PA
Graines Voltz SA
Price:  
18.70 
EUR
Volume:  
589.00
France | Distributors
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

GRVO.PA WACC - Weighted Average Cost of Capital

The WACC of Graines Voltz SA (GRVO.PA) is 5.1%.

The Cost of Equity of Graines Voltz SA (GRVO.PA) is 7.65%.
The Cost of Debt of Graines Voltz SA (GRVO.PA) is 5.30%.

Range Selected
Cost of equity 5.60% - 9.70% 7.65%
Tax rate 24.10% - 28.00% 26.05%
Cost of debt 4.00% - 6.60% 5.30%
WACC 3.8% - 6.3% 5.1%
WACC

GRVO.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.44 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 9.70%
Tax rate 24.10% 28.00%
Debt/Equity ratio 2.15 2.15
Cost of debt 4.00% 6.60%
After-tax WACC 3.8% 6.3%
Selected WACC 5.1%

GRVO.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 GRVO.PA:

cost_of_equity (7.65%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.44) + 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.