PCA.PA
Pcas SA
Price:  
8.00 
EUR
Volume:  
1,753,590.00
France | Life Sciences Tools & Services
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PCA.PA WACC - Weighted Average Cost of Capital

The WACC of Pcas SA (PCA.PA) is 5.3%.

The Cost of Equity of Pcas SA (PCA.PA) is 6.35%.
The Cost of Debt of Pcas SA (PCA.PA) is 5.00%.

Range Selected
Cost of equity 5.20% - 7.50% 6.35%
Tax rate 23.80% - 27.50% 25.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 6.0% 5.3%
WACC

PCA.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.39 0.52
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 7.50%
Tax rate 23.80% 27.50%
Debt/Equity ratio 0.67 0.67
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 6.0%
Selected WACC 5.3%

PCA.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 PCA.PA:

cost_of_equity (6.35%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.39) + 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.