PVL.PA WACC - Weighted Average Cost of Capital

The WACC of Plastiques du Val de Loire SA (PVL.PA) is 8.6%.

The Cost of Equity of Plastiques du Val de Loire SA (PVL.PA) is 7.25%.

The Cost of Debt of Plastiques du Val de Loire SA (PVL.PA) is 13.50%.

	Range	Selected
Cost of equity	6.30% - 8.20%	7.25%
Tax rate	26.40% - 35.10%	30.75%
Cost of debt	4.00% - 23.00%	13.50%
WACC	3.5% - 13.7%	8.6%

WACC

PVL.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.56	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.20%

Tax rate	26.40%	35.10%
Debt/Equity ratio	4.48	4.48
Cost of debt	4.00%	23.00%

After-tax WACC	3.5%	13.7%


Selected WACC	8.6%

PVL.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 PVL.PA:

cost_of_equity (7.25%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.56) + 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.