SRP.PA WACC - Weighted Average Cost of Capital
The WACC of SRP Groupe SA (SRP.PA) is 7.7%.
| Range | Selected | |
| Cost of equity | 8.4% - 12.1% | 10.25% |
| Tax rate | 22.5% - 40.0% | 31.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.7% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.92 | 1.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 12.1% |
| Tax rate | 22.5% | 40.0% |
| Debt/Equity ratio | 0.6 | 0.6 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.7% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SRP.PA | SRP Groupe SA | 0.6 | 0.37 | 0.27 |
| ALLDL.PA | Groupe LDLC SA | 0.86 | 1.2 | 0.76 |
| BHG.ST | BHG Group AB | 0.61 | 1.37 | 0.97 |
| BOOZT.ST | Boozt AB | 0.16 | 0.98 | 0.88 |
| DEX.DE | Delticom AG | 2.2 | 0.83 | 0.33 |
| IVS.MI | IVS Group SA | 0.87 | 0.13 | 0.08 |
| MYSL.L | MySale Group PLC | 0.11 | 1.53 | 1.43 |
| NELLY.ST | Nelly Group AB (publ) | 0.2 | 1.12 | 0.99 |
| STU.L | Studio Retail Group PLC | 3.3 | 1.37 | 0.43 |
| VERK.HE | Verkkokauppa.com Oyj | 0.38 | 1.33 | 1.06 |
| Low | High | |
| Unlevered beta | 0.63 | 0.92 |
| Relevered beta | 0.88 | 1.28 |
| Adjusted relevered beta | 0.92 | 1.19 |
SRP.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 SRP.PA:
cost_of_equity (10.25%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.92) + 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.