RXL.PA WACC - Weighted Average Cost of Capital
The WACC of Rexel SA (RXL.PA) is 7.1%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.2% | 9.75% |
| Tax rate | 25.5% - 34.3% | 29.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.3% - 8.0% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.92 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.2% |
| Tax rate | 25.5% | 34.3% |
| Debt/Equity ratio | 0.64 | 0.64 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.3% | 8.0% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RXL.PA | Rexel SA | 0.64 | 1.48 | 1 |
| BNR.DE | Brenntag SE | 0.39 | 0.92 | 0.72 |
| BNZL.L | Bunzl plc | 0.47 | 0 | 0 |
| BYW6.DE | BayWa AG | 20.06 | 1.09 | 0.07 |
| ECM.L | Electrocomponents PLC | 0.07 | 1.22 | 1.16 |
| FERG.L | Ferguson PLC | 0.15 | 1.11 | 1 |
| GFTU.L | Grafton Group PLC | 0.33 | 0.98 | 0.79 |
| IMCD.AS | IMCD NV | 0.24 | 0.81 | 0.69 |
| JCQ.PA | Jacquet Metals SA | 1.22 | 0.88 | 0.46 |
| KCO.DE | Kloeckner & Co SE | 1.43 | 0.94 | 0.46 |
| Low | High | |
| Unlevered beta | 0.6 | 0.74 |
| Relevered beta | 0.88 | 1.09 |
| Adjusted relevered beta | 0.92 | 1.06 |
RXL.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 RXL.PA:
cost_of_equity (9.75%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.92) + 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.