GVNV.AS WACC - Weighted Average Cost of Capital
The WACC of Grandvision NV (GVNV.AS) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.0% | 7.75% |
| Tax rate | 28.3% - 28.9% | 28.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 7.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.3% | 2.8% |
| Equity market risk premium | 6.6% | 7.6% |
| Adjusted beta | 0.63 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.0% |
| Tax rate | 28.3% | 28.9% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 7.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GVNV.AS | Grandvision NV | 0.28 | 0.43 | 0.36 |
| DUFN.SW | Dufry AG | 1.42 | 1.15 | 0.57 |
| FIE.DE | Fielmann AG | 0.12 | 0.86 | 0.79 |
| IPO.WA | Intersport Polska SA | 0.97 | 0.25 | 0.15 |
| NAKAS.AT | Philippos Nakas SA | 0.25 | 0.04 | 0.04 |
| PETS.L | Pets at Home Group PLC | 0.33 | 1.21 | 0.98 |
| SCHO.L | Scholium Group PLC | 0.38 | -0.06 | -0.05 |
| SGI.L | Stanley Gibbons Group PLC | 3.42 | 1.23 | 0.36 |
| SMWH.L | WH Smith PLC | 0.76 | 1.49 | 0.96 |
| VALN.SW | Valora Holding AG | 1.21 | 1.15 | 0.62 |
| Low | High | |
| Unlevered beta | 0.36 | 0.59 |
| Relevered beta | 0.45 | 0.61 |
| Adjusted relevered beta | 0.63 | 0.74 |
GVNV.AS'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 GVNV.AS:
cost_of_equity (7.75%) = risk_free_rate (2.55%) + equity_risk_premium (7.10%) * adjusted_beta (0.63) + 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.