SGO.PA
Compagnie de Saint Gobain SA
Price:  
98.86 
EUR
Volume:  
1,111,276.00
France | Building Products
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SGO.PA WACC - Weighted Average Cost of Capital

The WACC of Compagnie de Saint Gobain SA (SGO.PA) is 7.8%.

The Cost of Equity of Compagnie de Saint Gobain SA (SGO.PA) is 9.35%.
The Cost of Debt of Compagnie de Saint Gobain SA (SGO.PA) is 5.00%.

Range Selected
Cost of equity 7.60% - 11.10% 9.35%
Tax rate 26.00% - 26.70% 26.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.5% - 9.1% 7.8%
WACC

SGO.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.79 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 11.10%
Tax rate 26.00% 26.70%
Debt/Equity ratio 0.37 0.37
Cost of debt 5.00% 5.00%
After-tax WACC 6.5% 9.1%
Selected WACC 7.8%

SGO.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 SGO.PA:

cost_of_equity (9.35%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.79) + 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.