Editing Safran SA (section)

==== Key inputs ====
{| class="wikitable"
!Description
!Value 
!Commentary
|-
|Discount rate (%)
| 8.2% 
|The application of the weighted average cost of capital (WACC) formula was used to compute the discount rate for future cash flows.
|-
|Long term growth rate (%)
|1.7%
|We used the growth rate of you Dividend Discount Model.
|-
|Corporate Tax Rate (%)
|25%
|According to the new French legislation, the Corporate Tax Rate should be at 25%
as from 1 January 2022.<ref>https://www.economie.gouv.fr/files/files/Actus2018/dp_plf2019.pdf</ref> 
|}


For this model, we use the WACC model to compute the discount rate for the future cash flows.
{| class="wikitable"
!Cost of equity
|8.68%
|-
!Cost of debt
|5.00%
|-
!Tax rate
|25.00%
|-
!Debt
|6,957
|-
!Equity (Current market cap)
|65,010
|-
!D/(D+E)
|10%
|-
!E/(D+E)
|90%
|-
!WACC
|'''8.20%'''
|}