GRVO.PA WACC - Weighted Average Cost of Capital

The WACC of Graines Voltz SA (GRVO.PA) is 6.0%.

The Cost of Equity of Graines Voltz SA (GRVO.PA) is 10.65%.

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

	Range	Selected
Cost of equity	7.40% - 13.90%	10.65%
Tax rate	24.10% - 28.00%	26.05%
Cost of debt	4.00% - 6.60%	5.30%
WACC	4.4% - 7.6%	6.0%

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	0.75	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	13.90%

Tax rate	24.10%	28.00%
Debt/Equity ratio	2.27	2.27
Cost of debt	4.00%	6.60%

After-tax WACC	4.4%	7.6%


Selected WACC	6.0%

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 (10.65%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.75) + 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.