INEA.PA WACC - Weighted Average Cost of Capital
The WACC of Fonciere Inea SA (INEA.PA) is 6.7%.
| Range | Selected | |
| Cost of equity | 9.0% - 12.0% | 10.5% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 4.0% - 8.2% | 6.1% |
| WACC | 5.2% - 8.3% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.03 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 12.0% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 1.65 | 1.65 |
| Cost of debt | 4.0% | 8.2% |
| After-tax WACC | 5.2% | 8.3% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INEA.PA | Fonciere Inea SA | 1.65 | 0.29 | 0.13 |
| ARM.MC | Arima Real Estate SOCIMI SA | 0.5 | 0.78 | 0.57 |
| CGR.PA | CeGeREAL SA | 1.22 | 0.9 | 0.47 |
| CRES.MI | COIMA RES SpA SIIQ | 0.84 | 0.74 | 0.46 |
| GPOR.L | Great Portland Estates PLC | 0.29 | 0.75 | 0.62 |
| INTO.BR | Intervest Offices & Warehouses NV | 1.05 | -0.58 | -0.32 |
| MCKS.L | McKay Securities PLC | 0.56 | 0.8 | 0.57 |
| RGL.L | Regional REIT Ltd | 2.21 | 0.5 | 0.19 |
| VKGYO.IS | Vakif Gayrimenkul Yatirim Ortakligi AS | 0.23 | 1.14 | 0.97 |
| WKP.L | Workspace Group PLC | 1.02 | 1.05 | 0.6 |
| Low | High | |
| Unlevered beta | 0.47 | 0.57 |
| Relevered beta | 1.04 | 1.25 |
| Adjusted relevered beta | 1.03 | 1.17 |
INEA.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 INEA.PA:
cost_of_equity (10.50%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.03) + 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.