OVH.PA
Ovh Groupe SA
Price:  
12.20 
EUR
Volume:  
123,926.00
France | N/A
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OVH.PA WACC - Weighted Average Cost of Capital

The WACC of Ovh Groupe SA (OVH.PA) is 4.1%.

The Cost of Equity of Ovh Groupe SA (OVH.PA) is 4.55%.
The Cost of Debt of Ovh Groupe SA (OVH.PA) is 4.25%.

Range Selected
Cost of equity 4.00% - 5.10% 4.55%
Tax rate 25.90% - 27.10% 26.50%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.7% - 4.5% 4.1%
WACC

OVH.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.09 0.09
Additional risk adjustments 0.5% 1.0%
Cost of equity 4.00% 5.10%
Tax rate 25.90% 27.10%
Debt/Equity ratio 0.47 0.47
Cost of debt 4.00% 4.50%
After-tax WACC 3.7% 4.5%
Selected WACC 4.1%

OVH.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 OVH.PA:

cost_of_equity (4.55%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.09) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.