SCHP.PA WACC - Weighted Average Cost of Capital
The WACC of Seche Environnement SA (SCHP.PA) is 5.0%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.8% | 7.4% |
| Tax rate | 30.2% - 31.9% | 31.05% |
| Cost of debt | 4.0% - 4.7% | 4.35% |
| WACC | 4.2% - 5.7% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.8% |
| Tax rate | 30.2% | 31.9% |
| Debt/Equity ratio | 1.22 | 1.22 |
| Cost of debt | 4.0% | 4.7% |
| After-tax WACC | 4.2% | 5.7% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCHP.PA | Seche Environnement SA | 1.22 | 0.68 | 0.37 |
| ATH.MI | Ambienthesis SpA | 1.15 | 0.48 | 0.27 |
| AUG.L | Augean PLC | 0.04 | 0.73 | 0.71 |
| AURE.PA | Aurea SA | 1.02 | 0.21 | 0.12 |
| BFSA.DE | Befesa SA | 0.62 | 1.44 | 1.01 |
| COM.PA | Cnim Groupe SA | 11.4 | 1.47 | 0.17 |
| GPE.PA | Groupe Pizzorno Environnement SA | 0.39 | 0 | 0 |
| GRI.MC | Grino Ecologic SA | 0.52 | -0.17 | -0.13 |
| OBL.WA | Orzel Bialy SA | 0.01 | 0.1 | 0.1 |
| VOW.OL | Vow ASA | 0.99 | 2.06 | 1.23 |
| Low | High | |
| Unlevered beta | 0.15 | 0.31 |
| Relevered beta | 0.27 | 0.57 |
| Adjusted relevered beta | 0.51 | 0.71 |
SCHP.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 SCHP.PA:
cost_of_equity (7.40%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.51) + 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.