PARP.PA
Groupe Partouche SA
Price:  
19.50 
EUR
Volume:  
3,448.00
France | Hotels, Restaurants & Leisure
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PARP.PA WACC - Weighted Average Cost of Capital

The WACC of Groupe Partouche SA (PARP.PA) is 5.3%.

The Cost of Equity of Groupe Partouche SA (PARP.PA) is 7.70%.
The Cost of Debt of Groupe Partouche SA (PARP.PA) is 4.25%.

Range Selected
Cost of equity 6.30% - 9.10% 7.70%
Tax rate 6.90% - 10.50% 8.70%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.7% - 6.0% 5.3%
WACC

PARP.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.58 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 9.10%
Tax rate 6.90% 10.50%
Debt/Equity ratio 1.63 1.63
Cost of debt 4.00% 4.50%
After-tax WACC 4.7% 6.0%
Selected WACC 5.3%

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 (7.70%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.58) + 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.