GTT.PA WACC - Weighted Average Cost of Capital

The WACC of Gaztransport et Technigaz SA (GTT.PA) is 8.3%.

The Cost of Equity of Gaztransport et Technigaz SA (GTT.PA) is 8.30%.

The Cost of Debt of Gaztransport et Technigaz SA (GTT.PA) is 4.40%.

	Range	Selected
Cost of equity	7.30% - 9.30%	8.30%
Tax rate	15.40% - 15.90%	15.65%
Cost of debt	4.00% - 4.80%	4.40%
WACC	7.3% - 9.3%	8.3%

WACC

GTT.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	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	9.30%

Tax rate	15.40%	15.90%
Debt/Equity ratio	0	0
Cost of debt	4.00%	4.80%

After-tax WACC	7.3%	9.3%


Selected WACC	8.3%

GTT.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 GTT.PA:

cost_of_equity (8.30%) = 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.