POM.PA WACC - Weighted Average Cost of Capital

The WACC of Compagnie Plastic Omnium SE (POM.PA) is 5.6%.

The Cost of Equity of Compagnie Plastic Omnium SE (POM.PA) is 9.40%.

The Cost of Debt of Compagnie Plastic Omnium SE (POM.PA) is 4.70%.

	Range	Selected
Cost of equity	7.00% - 11.80%	9.40%
Tax rate	27.30% - 28.40%	27.85%
Cost of debt	4.00% - 5.40%	4.70%
WACC	4.4% - 6.8%	5.6%

WACC

POM.PA WACC calculation

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	7.00%	11.80%

Tax rate	27.30%	28.40%
Debt/Equity ratio	1.71	1.71
Cost of debt	4.00%	5.40%

After-tax WACC	4.4%	6.8%


Selected WACC	5.6%

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.