Dassault Aviation SA (AM.PA) WACC Analysis

As of June 8, 2025, Dassault Aviation SA (AM.PA) carries a Weighted Average Cost of Capital (WACC) of 8.8%. WACC reflects the blended rate Dassault Aviation SA must pay to both equity and debt holders.

Within that, the cost of equity is 7.8%, the cost of debt is 5.0%, and the effective tax rate is 16.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.0% – 3.5%
• Equity market risk premium: 5.8% – 6.8%
• Adjusted beta: 0.83 – 0.87
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.01

What It Means for Investors

With a selected WACC of 8.8%, Dassault Aviation SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.