TRI.PA WACC - Weighted Average Cost of Capital

The WACC of Trigano SA (TRI.PA) is 8.7%.

The Cost of Equity of Trigano SA (TRI.PA) is 9.10%.

The Cost of Debt of Trigano SA (TRI.PA) is 4.25%.

	Range	Selected
Cost of equity	7.50% - 10.70%	9.10%
Tax rate	23.30% - 24.00%	23.65%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.2% - 10.1%	8.7%

WACC

TRI.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.78	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.70%

Tax rate	23.30%	24.00%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.00%	4.50%

After-tax WACC	7.2%	10.1%


Selected WACC	8.7%

TRI.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 TRI.PA:

cost_of_equity (9.10%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.78) + 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.