RE.PA
Colas SA
Price:  
175.00 
EUR
Volume:  
1,116.00
France | Construction & Engineering
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RE.PA WACC - Weighted Average Cost of Capital

The WACC of Colas SA (RE.PA) is 8.4%.

The Cost of Equity of Colas SA (RE.PA) is 8.60%.
The Cost of Debt of Colas SA (RE.PA) is 12.45%.

Range Selected
Cost of equity 7.40% - 9.80% 8.60%
Tax rate 37.30% - 38.50% 37.90%
Cost of debt 11.50% - 13.40% 12.45%
WACC 7.4% - 9.5% 8.4%
WACC

RE.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.76 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.80%
Tax rate 37.30% 38.50%
Debt/Equity ratio 0.25 0.25
Cost of debt 11.50% 13.40%
After-tax WACC 7.4% 9.5%
Selected WACC 8.4%

RE.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 RE.PA:

cost_of_equity (8.60%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.76) + 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.