TFF.PA WACC - Weighted Average Cost of Capital
The WACC of Tonnellerie Francois Freres SA (TFF.PA) is 7.3%.
| Range | Selected | |
| Cost of equity | 8.4% - 11.1% | 9.75% |
| Tax rate | 27.1% - 28.2% | 27.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 8.1% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.92 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 11.1% |
| Tax rate | 27.1% | 28.2% |
| Debt/Equity ratio | 0.67 | 0.67 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 8.1% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TFF.PA | Tonnellerie Francois Freres SA | 0.67 | 0.24 | 0.16 |
| BAKAB.IS | Bak Ambalaj Sanayi ve Ticaret AS | 0.22 | 0.64 | 0.55 |
| DURDO.IS | Duran Dogan Basim Ve Ambalaj Sanayi AS | 0.65 | 1.14 | 0.78 |
| FLEXO.AT | Flexopack SA | 0.37 | -0.02 | -0.02 |
| HART.CO | Broedrene Hartmann A/S | 0.45 | 0.23 | 0.17 |
| KAPLM.IS | Kaplamin Ambalaj Sanayi ve Ticaret AS | 0.04 | 1.06 | 1.03 |
| KARTN.IS | Kartonsan Karton Sanayi ve Ticaret AS | 0 | 0.63 | 0.63 |
| OLMIP.IS | Olmuksan International Paper Ambalaj Sanayi ve Ticaret AS | 0.08 | 1.06 | 1 |
| RBN.L | Robinson PLC | 0.44 | 0.89 | 0.68 |
| TIRE.IS | Mondi Tire Kutsan Kagit ve Ambalaj Sanayi AS | 0.15 | 1.3 | 1.18 |
| Low | High | |
| Unlevered beta | 0.6 | 0.72 |
| Relevered beta | 0.88 | 1.07 |
| Adjusted relevered beta | 0.92 | 1.05 |
TFF.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 TFF.PA:
cost_of_equity (9.75%) = 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.