Pierre et Vacances SA (VAC.PA) WACC Analysis

As of May 25, 2025, Pierre et Vacances SA (VAC.PA) carries a Weighted Average Cost of Capital (WACC) of 9.1%. WACC reflects the blended rate Pierre et Vacances SA must pay to both equity and debt holders.

Within that, the cost of equity is 8.4%, the cost of debt is 4.0%, and the effective tax rate is 4.3%.

Breakdown of WACC Components

• Long-term bond rate: 3.0% – 3.5%
• Equity market risk premium: 5.8% – 6.8%
• Adjusted beta: 0.92 – 1.23
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 4.78

What It Means for Investors

With a selected WACC of 9.1%, Pierre et Vacances SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.