SESG.PA WACC - Weighted Average Cost of Capital

The WACC of SES SA (SESG.PA) is 8.3%.

The Cost of Equity of SES SA (SESG.PA) is 8.20%.

The Cost of Debt of SES SA (SESG.PA) is 13.50%.

	Range	Selected
Cost of equity	7.00% - 9.40%	8.20%
Tax rate	21.80% - 41.30%	31.55%
Cost of debt	4.00% - 23.00%	13.50%
WACC	4.1% - 12.5%	8.3%

WACC

SESG.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.69	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	9.40%

Tax rate	21.80%	41.30%
Debt/Equity ratio	3.15	3.15
Cost of debt	4.00%	23.00%

After-tax WACC	4.1%	12.5%


Selected WACC	8.3%

SESG.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 SESG.PA:

cost_of_equity (8.20%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.69) + 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.