MAU.PA
Etablissements Maurel et Prom SA
Price:  
5.12 
EUR
Volume:  
124,541.00
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 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% - 9.9% 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 0.14 0.14
Cost of debt 4.00% 4.60%
After-tax WACC 7.3% 9.9%
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.