ILD.PA WACC - Weighted Average Cost of Capital
The WACC of Iliad SA (ILD.PA) is 5.7%.
| Range | Selected | |
| Cost of equity | 7.6% - 10.5% | 9.05% |
| Tax rate | 36.3% - 39.5% | 37.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.9% - 6.4% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 0.96 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 10.5% |
| Tax rate | 36.3% | 39.5% |
| Debt/Equity ratio | 1.11 | 1.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.9% | 6.4% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ILD.PA | Iliad SA | 1.11 | 0.21 | 0.12 |
| BBB.L | Bigblu Broadband PLC | 0.22 | -0.93 | -0.82 |
| BRE2.ST | Bredband2 i Skandinavien AB | 0.13 | 0.22 | 0.2 |
| GAMA.L | Gamma Communications PLC | 0.01 | 0.43 | 0.42 |
| ITD.MI | Intred SpA | 0.27 | 0.42 | 0.36 |
| LIT.MI | Reti Telematiche Italiane SpA | 0.37 | 0.72 | 0.59 |
| NFN.DE | NFON AG | 0.14 | 0.18 | 0.17 |
| TIS.MI | Tiscali SpA | 0.79 | 1.15 | 0.77 |
| TRANS.ST | Transtema Group AB | 0.66 | 0.58 | 0.41 |
| Low | High | |
| Unlevered beta | 0.24 | 0.4 |
| Relevered beta | 0.94 | 1.18 |
| Adjusted relevered beta | 0.96 | 1.12 |
ILD.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 ILD.PA:
cost_of_equity (9.05%) = risk_free_rate (2.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.96) + 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.