INEA.PA WACC - Weighted Average Cost of Capital

The WACC of Fonciere Inea SA (INEA.PA) is 7.7%.

The Cost of Equity of Fonciere Inea SA (INEA.PA) is 8.85%.

The Cost of Debt of Fonciere Inea SA (INEA.PA) is 9.55%.

	Range	Selected
Cost of equity	7.10% - 10.60%	8.85%
Tax rate	25.90% - 27.10%	26.50%
Cost of debt	4.30% - 14.80%	9.55%
WACC	4.6% - 10.7%	7.7%

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	0.7	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	10.60%

Tax rate	25.90%	27.10%
Debt/Equity ratio	1.69	1.69
Cost of debt	4.30%	14.80%

After-tax WACC	4.6%	10.7%


Selected WACC	7.7%

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 (8.85%) = 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.