VLTSA.PA WACC - Weighted Average Cost of Capital
The WACC of Voltalia SA (VLTSA.PA) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.5% | 7.45% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 5.2% - 14.8% | 10% |
| WACC | 4.7% - 10.0% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.59 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.5% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 1.91 | 1.91 |
| Cost of debt | 5.2% | 14.8% |
| After-tax WACC | 4.7% | 10.0% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VLTSA.PA | Voltalia SA | 1.91 | 0.62 | 0.26 |
| ABIO.PA | Albioma SA | 0.66 | 0.37 | 0.25 |
| ECV.DE | Encavis AG | 0.71 | 0.02 | 0.01 |
| ESUN.SW | Edisun Power Europe AG | 4.24 | 0.74 | 0.18 |
| FKR.MI | Falck Renewables SpA | 0.37 | 0.6 | 0.47 |
| MLHYE.PA | Hydro Exploitations SA | 0.54 | 0.09 | 0.06 |
| NSE.AS | New Sources Energy NV | 0.04 | 0.17 | 0.16 |
| SLR.MC | Solaria Energia y Medio Ambiente SA | 0.88 | 0.52 | 0.31 |
| TENERGY.AT | Terna Energy SA | 0.48 | 0.03 | 0.02 |
| INE.TO | Innergex Renewable Energy Inc | 2.46 | 0.45 | 0.16 |
| Low | High | |
| Unlevered beta | 0.16 | 0.21 |
| Relevered beta | 0.39 | 0.49 |
| Adjusted relevered beta | 0.59 | 0.66 |
VLTSA.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 VLTSA.PA:
cost_of_equity (7.45%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.59) + 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.