POM.PA WACC - Weighted Average Cost of Capital
The WACC of Compagnie Plastic Omnium SE (POM.PA) is 5.6%.
| Range | Selected | |
| Cost of equity | 7.0% - 11.8% | 9.4% |
| Tax rate | 27.3% - 28.4% | 27.85% |
| Cost of debt | 4.0% - 5.4% | 4.7% |
| WACC | 4.4% - 6.8% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.74 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 11.8% |
| Tax rate | 27.3% | 28.4% |
| Debt/Equity ratio | 1.71 | 1.71 |
| Cost of debt | 4.0% | 5.4% |
| After-tax WACC | 4.4% | 6.8% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| POM.PA | Compagnie Plastic Omnium SE | 1.71 | 1.18 | 0.53 |
| AUTN.SW | Autoneum Holding AG | 0.61 | 1.1 | 0.77 |
| BULTEN.ST | Bulten AB | 1.42 | 0.5 | 0.25 |
| BUR.PA | Burelle SA | 3.83 | 0.73 | 0.19 |
| GEST.MC | Gestamp Automocion SA | 1.91 | 0.72 | 0.3 |
| HLE.DE | HELLA GmbH & Co KGaA | 0.12 | 0.33 | 0.31 |
| KOA.OL | Kongsberg Automotive ASA | 1.55 | 0.9 | 0.43 |
| LEO.DE | Leoni AG | 427.67 | -0.4 | 0 |
| LR.MI | Landi Renzo SpA | 1.07 | 1.2 | 0.68 |
| TIFS.L | TI Fluid Systems PLC | 1.02 | 0.36 | 0.21 |
| Low | High | |
| Unlevered beta | 0.28 | 0.35 |
| Relevered beta | 0.61 | 1.3 |
| Adjusted relevered beta | 0.74 | 1.2 |
POM.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 POM.PA:
cost_of_equity (9.40%) = risk_free_rate (2.85%) + equity_risk_premium (6.30%) * adjusted_beta (0.74) + 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.