Eutelsat Communications SA (ETL.PA) WACC Analysis

As of May 31, 2025, Eutelsat Communications SA (ETL.PA) carries a Weighted Average Cost of Capital (WACC) of 5.6%. WACC reflects the blended rate Eutelsat Communications SA must pay to both equity and debt holders.

Within that, the cost of equity is 6.2%, the cost of debt is 4.0%, and the effective tax rate is 11.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.0% – 3.5%
• Equity market risk premium: 5.8% – 6.8%
• Adjusted beta: 0.55 – 0.67
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.02

What It Means for Investors

With a selected WACC of 5.6%, Eutelsat Communications SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.