MAU.PA WACC - Weighted Average Cost of Capital

The WACC of Etablissements Maurel et Prom SA (MAU.PA) is 8.6%.

The Cost of Equity of Etablissements Maurel et Prom SA (MAU.PA) is 9.40%.

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

	Range	Selected
Cost of equity	7.90% - 10.90%	9.40%
Tax rate	37.00% - 42.30%	39.65%
Cost of debt	4.00% - 4.60%	4.30%
WACC	7.3% - 10.0%	8.6%

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	0.85	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.90%

Tax rate	37.00%	42.30%
Debt/Equity ratio	0.13	0.13
Cost of debt	4.00%	4.60%

After-tax WACC	7.3%	10.0%


Selected WACC	8.6%

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 (9.40%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.85) + 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.