WLN.PA WACC - Weighted Average Cost of Capital
The WACC of Worldline SA (WLN.PA) is 4.7%.
| Range | Selected | |
| Cost of equity | 6.0% - 10.6% | 8.3% |
| Tax rate | 16.2% - 24.7% | 20.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.1% - 5.4% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 10.6% |
| Tax rate | 16.2% | 24.7% |
| Debt/Equity ratio | 2.55 | 2.55 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.1% | 5.4% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WLN.PA | Worldline SA | 2.55 | 1.13 | 0.39 |
| CASS | Cass Information Systems Inc | 1.27 | 0.55 | 0.28 |
| MGI | MoneyGram International Inc | 0.73 | 0.12 | 0.07 |
| WU | Western Union Co | 0.96 | 0.17 | 0.1 |
| BOKU.L | Boku Inc | 0 | 0.77 | 0.77 |
| EQLS.L | Equals Group PLC | 0.01 | -0.15 | -0.15 |
| FIN.L | Finablr PLC | 0.09 | 0.99 | 0.93 |
| FNX.L | Fonix Mobile PLC | 0 | -0.34 | -0.34 |
| NETW.L | Network International Holdings PLC | 0.16 | 0.09 | 0.08 |
| TUNG.L | Tungsten Corp PLC | 0.11 | 1.66 | 1.54 |
| Low | High | |
| Unlevered beta | 0.09 | 0.32 |
| Relevered beta | 0.27 | 0.94 |
| Adjusted relevered beta | 0.51 | 0.96 |
WLN.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 WLN.PA:
cost_of_equity (8.30%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.51) + 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.