The WACC of Interparfums SA (ITP.PA) is 7.8%.
Range | Selected | |
Cost of equity | 6.8% - 9.3% | 8.05% |
Tax rate | 26.3% - 27.9% | 27.1% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.6% - 9.0% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.0% | 3.5% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.65 | 0.78 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.8% | 9.3% |
Tax rate | 26.3% | 27.9% |
Debt/Equity ratio | 0.06 | 0.06 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.6% | 9.0% |
Selected WACC | 7.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ITP.PA | Interparfums SA | 0.06 | 1.02 | 0.98 |
CRL.L | Creightons PLC | 0.14 | 0.66 | 0.6 |
ECILC.IS | EIS Eczacibasi Ilac Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS | 0.03 | 0.63 | 0.61 |
GLC.WA | Global Cosmed SA | 0.21 | 0.28 | 0.25 |
JBOG.PA | Jacques Bogart SA | 2.87 | 0.42 | 0.14 |
LLQ.SW | Lalique Group SA | 0.25 | 0.89 | 0.75 |
MSON B.ST | Midsona AB | 0.46 | 0.09 | 0.06 |
SAR.AT | Gr Sarantis SA | 0.11 | 0.75 | 0.69 |
SIS.L | Science in Sport PLC | 0.16 | 0.12 | 0.11 |
W7L.L | Warpaint London PLC | 0.01 | 1.57 | 1.56 |
Low | High | |
Unlevered beta | 0.46 | 0.65 |
Relevered beta | 0.48 | 0.67 |
Adjusted relevered beta | 0.65 | 0.78 |
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 ITP.PA:
cost_of_equity (8.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.65) + 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.