MF.PA WACC - Weighted Average Cost of Capital
The WACC of Wendel SE (MF.PA) is 6.0%.
| Range | Selected | |
| Cost of equity | 9.2% - 12.4% | 10.8% |
| Tax rate | 35.7% - 41.2% | 38.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 6.5% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.06 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 12.4% |
| Tax rate | 35.7% | 41.2% |
| Debt/Equity ratio | 1.66 | 1.66 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 6.5% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MF.PA | Wendel SE | 1.66 | 0.95 | 0.46 |
| ACKB.BR | Ackermans & Van Haaren NV | 1.31 | 0.94 | 0.51 |
| AKER.OL | Aker ASA | 0.81 | 1.23 | 0.81 |
| CRED A.ST | Creades AB (publ) | 0 | 1.16 | 1.16 |
| GBLB.BR | Groep Brussel Lambert NV | 0.8 | 0.84 | 0.56 |
| HAL.AS | HAL Trust | 0.44 | 0.57 | 0.44 |
| INDU A.ST | Industrivarden AB | 0.05 | 1.07 | 1.04 |
| MIG.AT | Marfin Investment Group Holdings SA | 0.89 | 0.84 | 0.54 |
| RF.PA | Eurazeo SE | 0.28 | 1.41 | 1.19 |
| SAHOL.IS | Haci Omer Sabanci Holding AS | 2.95 | 1.16 | 0.4 |
| Low | High | |
| Unlevered beta | 0.53 | 0.66 |
| Relevered beta | 1.09 | 1.36 |
| Adjusted relevered beta | 1.06 | 1.24 |
MF.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 MF.PA:
cost_of_equity (10.80%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.06) + 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.