PARP.PA WACC - Weighted Average Cost of Capital
The WACC of Groupe Partouche SA (PARP.PA) is 5.4%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.1% | 7.8% |
| Tax rate | 6.9% - 10.5% | 8.7% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.8% - 6.0% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.6 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.1% |
| Tax rate | 6.9% | 10.5% |
| Debt/Equity ratio | 1.62 | 1.62 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.8% | 6.0% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PARP.PA | Groupe Partouche SA | 1.62 | 0.31 | 0.12 |
| ACROUD.ST | Acroud AB | 1.21 | 0.59 | 0.28 |
| ACX.DE | bet-at-home.com AG | 0.07 | 0.25 | 0.23 |
| CDR.MC | Codere SA | 61.71 | 1.12 | 0.02 |
| EMH.DE | Pferdewetten de AG | 0.06 | 0.35 | 0.33 |
| FCMC.PA | Fermiere du Casino Municipal Cannes SA | 0.22 | 0.2 | 0.16 |
| LO24.DE | Lotto24 AG | 0.01 | 0.37 | 0.37 |
| SPO.L | Sportech PLC | 0.96 | 0.31 | 0.16 |
| TIMA.DE | ZEAL Network SE | 0.1 | 0.39 | 0.36 |
| WEB.L | Webis Holding PLC | 7.1 | -1.38 | -0.18 |
| Low | High | |
| Unlevered beta | 0.16 | 0.25 |
| Relevered beta | 0.4 | 0.63 |
| Adjusted relevered beta | 0.6 | 0.75 |
PARP.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 PARP.PA:
cost_of_equity (7.80%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.6) + 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.