TCHCS.PA WACC - Weighted Average Cost of Capital

The WACC of Technicolor Creative Studios SA (TCHCS.PA) is 8.6%.

The Cost of Equity of Technicolor Creative Studios SA (TCHCS.PA) is 11.30%.

The Cost of Debt of Technicolor Creative Studios SA (TCHCS.PA) is 11.65%.

	Range	Selected
Cost of equity	8.50% - 14.10%	11.30%
Tax rate	16.40% - 35.70%	26.05%
Cost of debt	8.50% - 14.80%	11.65%
WACC	7.3% - 10.0%	8.6%

WACC

TCHCS.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.95	1.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	14.10%

Tax rate	16.40%	35.70%
Debt/Equity ratio	8.5	8.5
Cost of debt	8.50%	14.80%

After-tax WACC	7.3%	10.0%


Selected WACC	8.6%

TCHCS.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 TCHCS.PA:

cost_of_equity (11.30%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.95) + 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.