RF.PA WACC - Weighted Average Cost of Capital

The WACC of Eurazeo SE (RF.PA) is 8.7%.

The Cost of Equity of Eurazeo SE (RF.PA) is 7.65%.

The Cost of Debt of Eurazeo SE (RF.PA) is 12.65%.

	Range	Selected
Cost of equity	6.40% - 8.90%	7.65%
Tax rate	3.50% - 6.10%	4.80%
Cost of debt	5.30% - 20.00%	12.65%
WACC	6.1% - 11.3%	8.7%

WACC

RF.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.59	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.90%

Tax rate	3.50%	6.10%
Debt/Equity ratio	0.32	0.32
Cost of debt	5.30%	20.00%

After-tax WACC	6.1%	11.3%


Selected WACC	8.7%

RF.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 RF.PA:

cost_of_equity (7.65%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.59) + 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.