INEA.PA WACC - Weighted Average Cost of Capital

The WACC of Fonciere Inea SA (INEA.PA) is 6.7%.

The Cost of Equity of Fonciere Inea SA (INEA.PA) is 10.35%.

The Cost of Debt of Fonciere Inea SA (INEA.PA) is 6.10%.

	Range	Selected
Cost of equity	8.90% - 11.80%	10.35%
Tax rate	25.90% - 27.10%	26.50%
Cost of debt	4.00% - 8.20%	6.10%
WACC	5.2% - 8.2%	6.7%

WACC

INEA.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.02	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.80%

Tax rate	25.90%	27.10%
Debt/Equity ratio	1.61	1.61
Cost of debt	4.00%	8.20%

After-tax WACC	5.2%	8.2%


Selected WACC	6.7%

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 (10.35%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.02) + 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.