PCA.PA WACC - Weighted Average Cost of Capital

The WACC of Pcas SA (PCA.PA) is 5.4%.

The Cost of Equity of Pcas SA (PCA.PA) is 6.50%.

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

	Range	Selected
Cost of equity	5.50% - 7.50%	6.50%
Tax rate	23.80% - 27.50%	25.65%
Cost of debt	5.00% - 5.00%	5.00%
WACC	4.8% - 5.9%	5.4%

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	0.43	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	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	4.8%	5.9%


Selected WACC	5.4%

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 (6.50%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.43) + 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.