TOUP.PA WACC - Weighted Average Cost of Capital

The WACC of Touax Sgtr Cite Sgt Cmte Taf Slm Touage Investissements Reunies SCA (TOUP.PA) is 11.1%.

The Cost of Equity of Touax Sgtr Cite Sgt Cmte Taf Slm Touage Investissements Reunies SCA (TOUP.PA) is 17.50%.

The Cost of Debt of Touax Sgtr Cite Sgt Cmte Taf Slm Touage Investissements Reunies SCA (TOUP.PA) is 13.90%.

	Range	Selected
Cost of equity	11.40% - 23.60%	17.50%
Tax rate	16.20% - 25.70%	20.95%
Cost of debt	4.80% - 23.00%	13.90%
WACC	4.6% - 17.6%	11.1%

WACC

TOUP.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.45	2.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	23.60%

Tax rate	16.20%	25.70%
Debt/Equity ratio	12.44	12.44
Cost of debt	4.80%	23.00%

After-tax WACC	4.6%	17.6%


Selected WACC	11.1%

TOUP.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 TOUP.PA:

cost_of_equity (17.50%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.45) + 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.