MBWS.PA
Marie Brizard Wine and Spirits SA
Price:  
3.22 
EUR
Volume:  
6,766.00
France | Beverages
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MBWS.PA WACC - Weighted Average Cost of Capital

The WACC of Marie Brizard Wine and Spirits SA (MBWS.PA) is 6.1%.

The Cost of Equity of Marie Brizard Wine and Spirits SA (MBWS.PA) is 6.15%.
The Cost of Debt of Marie Brizard Wine and Spirits SA (MBWS.PA) is 5.00%.

Range Selected
Cost of equity 5.30% - 7.00% 6.15%
Tax rate 17.90% - 27.20% 22.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 6.9% 6.1%
WACC

MBWS.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.4 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 7.00%
Tax rate 17.90% 27.20%
Debt/Equity ratio 0.02 0.02
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 6.9%
Selected WACC 6.1%

MBWS.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 MBWS.PA:

cost_of_equity (6.15%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.4) + 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.