MAU.PA
Etablissements Maurel et Prom SA
Price:  
4.83 
EUR
Volume:  
91,519.00
France | Oil, Gas & Consumable Fuels
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MAU.PA WACC - Weighted Average Cost of Capital

The WACC of Etablissements Maurel et Prom SA (MAU.PA) is 9.2%.

The Cost of Equity of Etablissements Maurel et Prom SA (MAU.PA) is 10.15%.
The Cost of Debt of Etablissements Maurel et Prom SA (MAU.PA) is 4.30%.

Range Selected
Cost of equity 8.50% - 11.80% 10.15%
Tax rate 37.00% - 42.30% 39.65%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.8% - 10.6% 9.2%
WACC

MAU.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.95 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.80%
Tax rate 37.00% 42.30%
Debt/Equity ratio 0.15 0.15
Cost of debt 4.00% 4.60%
After-tax WACC 7.8% 10.6%
Selected WACC 9.2%

MAU.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 MAU.PA:

cost_of_equity (10.15%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.95) + 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.