GTT.PA WACC - Weighted Average Cost of Capital

The WACC of Gaztransport et Technigaz SA (GTT.PA) is 8.4%.

The Cost of Equity of Gaztransport et Technigaz SA (GTT.PA) is 8.45%.

The Cost of Debt of Gaztransport et Technigaz SA (GTT.PA) is 5.15%.

	Range	Selected
Cost of equity	7.10% - 9.80%	8.45%
Tax rate	14.70% - 15.30%	15.00%
Cost of debt	4.00% - 6.30%	5.15%
WACC	7.1% - 9.8%	8.4%

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	0.7	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	9.80%

Tax rate	14.70%	15.30%
Debt/Equity ratio	0	0
Cost of debt	4.00%	6.30%

After-tax WACC	7.1%	9.8%


Selected WACC	8.4%

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 (8.45%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.7) + 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.