UFF.PA WACC - Weighted Average Cost of Capital

The WACC of Union Financiere de France Banque SA (UFF.PA) is 6.5%.

The Cost of Equity of Union Financiere de France Banque SA (UFF.PA) is 7.50%.

The Cost of Debt of Union Financiere de France Banque SA (UFF.PA) is 5.00%.

	Range	Selected
Cost of equity	6.50% - 8.50%	7.50%
Tax rate	30.70% - 33.50%	32.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.8% - 7.3%	6.5%

WACC

UFF.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.61	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	8.50%

Tax rate	30.70%	33.50%
Debt/Equity ratio	0.33	0.33
Cost of debt	5.00%	5.00%

After-tax WACC	5.8%	7.3%


Selected WACC	6.5%

UFF.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 UFF.PA:

cost_of_equity (7.50%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.61) + 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.