Renault SA (RNO.PA) WACC Analysis

As of May 22, 2025, Renault SA (RNO.PA) carries a Weighted Average Cost of Capital (WACC) of 5.4%. WACC reflects the blended rate Renault SA must pay to both equity and debt holders.

Within that, the cost of equity is 12.3%, the cost of debt is 4.0%, and the effective tax rate is 22.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.0% – 3.5%
• Equity market risk premium: 5.8% – 6.8%
• Adjusted beta: 1.6 – 2.45
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 4.89

What It Means for Investors

With a selected WACC of 5.4%, Renault SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.