PSAT.PA WACC - Weighted Average Cost of Capital
The WACC of Passat SA (PSAT.PA) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.7% - 11.3% | 9% |
| Tax rate | 23.1% - 24.6% | 23.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 9.3% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.63 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 11.3% |
| Tax rate | 23.1% | 24.6% |
| Debt/Equity ratio | 0.38 | 0.38 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 9.3% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PSAT.PA | Passat SA | 0.38 | 0.42 | 0.32 |
| AO.L | AO World PLC | 0.12 | 0.92 | 0.84 |
| BHG.ST | BHG Group AB | 0.6 | 1.32 | 0.9 |
| BTBB.DE | SLEEPZ AG | 0.4 | -0.47 | -0.36 |
| ECF.DE | Mountain Alliance AG | 0 | 0.03 | 0.03 |
| EVE.L | eve Sleep plc | 0.46 | 0.5 | 0.37 |
| LAUR.ST | Lauritz.com Group A/S | 15.31 | 0.66 | 0.05 |
| MYSL.L | MySale Group PLC | 0.11 | 1.53 | 1.41 |
| NELLY.ST | Nelly Group AB (publ) | 0.22 | 1.12 | 0.96 |
| VERK.HE | Verkkokauppa.com Oyj | 0.39 | 1.32 | 1.02 |
| Low | High | |
| Unlevered beta | 0.35 | 0.87 |
| Relevered beta | 0.45 | 1.12 |
| Adjusted relevered beta | 0.63 | 1.08 |
PSAT.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 PSAT.PA:
cost_of_equity (9.00%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.63) + 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.