SAVE.PA WACC - Weighted Average Cost of Capital
The WACC of Savencia SA (SAVE.PA) is 5.3%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.1% | 8% |
| Tax rate | 36.5% - 39.6% | 38.05% |
| Cost of debt | 4.0% - 6.1% | 5.05% |
| WACC | 4.5% - 6.2% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.67 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.1% |
| Tax rate | 36.5% | 39.6% |
| Debt/Equity ratio | 1.21 | 1.21 |
| Cost of debt | 4.0% | 6.1% |
| After-tax WACC | 4.5% | 6.2% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SAVE.PA | Savencia SA | 1.21 | 0.45 | 0.26 |
| ARYN.SW | Aryzta AG | 0.36 | 0.75 | 0.62 |
| BELL.SW | Bell Food Group AG | 0.62 | -0.01 | -0.01 |
| FBEL.PA | BEL SA | 0.31 | 0.51 | 0.43 |
| GL9.IR | Glanbia PLC | 0.29 | 0.66 | 0.56 |
| GREEN.BR | Greenyard NV | 1.61 | 0.61 | 0.31 |
| LOUP.PA | Societe LDC SA | 0.14 | 0.07 | 0.06 |
| SZU.DE | Suedzucker AG | 0.96 | 0.51 | 0.32 |
| TATE.L | Tate & Lyle PLC | 0.23 | 1.11 | 0.98 |
| UNBL.PA | Unibel SA | 0.53 | 0.03 | 0.02 |
| Low | High | |
| Unlevered beta | 0.29 | 0.37 |
| Relevered beta | 0.51 | 0.64 |
| Adjusted relevered beta | 0.67 | 0.76 |
SAVE.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 SAVE.PA:
cost_of_equity (8.00%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.67) + 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.