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.