SESG.PA
SES SA
Price:  
6.31 
EUR
Volume:  
356,736
Luxembourg | Media

SESG.PA WACC - Weighted Average Cost of Capital

The WACC of SES SA (SESG.PA) is 4.8%.

The Cost of Equity of SES SA (SESG.PA) is 6.95%.
The Cost of Debt of SES SA (SESG.PA) is 5.3%.

RangeSelected
Cost of equity6.1% - 7.8%6.95%
Tax rate19.4% - 41.3%30.35%
Cost of debt4.0% - 6.6%5.3%
WACC4.3% - 5.4%4.8%
WACC

SESG.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.530.56
Additional risk adjustments0.0%0.5%
Cost of equity6.1%7.8%
Tax rate19.4%41.3%
Debt/Equity ratio
1.631.63
Cost of debt4.0%6.6%
After-tax WACC4.3%5.4%
Selected WACC4.8%

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 (6.95%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.53) + 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.