Eramet SA (ERA.PA) WACC Analysis

As of June 15, 2025, Eramet SA (ERA.PA) carries a Weighted Average Cost of Capital (WACC) of 9.9%. WACC reflects the blended rate Eramet SA must pay to both equity and debt holders.

Within that, the cost of equity is 7.3%, the cost of debt is 5.8%, and the effective tax rate is 25.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.0% – 3.5%
• Equity market risk premium: 5.8% – 6.8%
• Adjusted beta: 0.74 – 0.94
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.69

What It Means for Investors

With a selected WACC of 9.9%, Eramet SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.