SMTPC.PA
Societe Marseillaise du Tunnel Prado Carenage SA
Price:  
27.70 
EUR
Volume:  
2,751.00
France | Transportation Infrastructure
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SMTPC.PA WACC - Weighted Average Cost of Capital

The WACC of Societe Marseillaise du Tunnel Prado Carenage SA (SMTPC.PA) is 7.7%.

The Cost of Equity of Societe Marseillaise du Tunnel Prado Carenage SA (SMTPC.PA) is 9.15%.
The Cost of Debt of Societe Marseillaise du Tunnel Prado Carenage SA (SMTPC.PA) is 5.00%.

Range Selected
Cost of equity 7.50% - 10.80% 9.15%
Tax rate 26.60% - 27.10% 26.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.5% - 8.9% 7.7%
WACC

SMTPC.PA WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 6.2% 7.2%
Adjusted beta 0.71 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.80%
Tax rate 26.60% 27.10%
Debt/Equity ratio 0.37 0.37
Cost of debt 5.00% 5.00%
After-tax WACC 6.5% 8.9%
Selected WACC 7.7%

SMTPC.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 SMTPC.PA:

cost_of_equity (9.15%) = risk_free_rate (3.35%) + equity_risk_premium (6.70%) * adjusted_beta (0.71) + 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.