AALB.AS WACC - Weighted Average Cost of Capital

The WACC of Aalberts NV (AALB.AS) is 8.4%.

The Cost of Equity of Aalberts NV (AALB.AS) is 9.50%.

The Cost of Debt of Aalberts NV (AALB.AS) is 4.25%.

	Range	Selected
Cost of equity	8.40% - 10.60%	9.50%
Tax rate	24.30% - 24.80%	24.55%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.5% - 9.4%	8.4%

WACC

AALB.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.14	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	10.60%

Tax rate	24.30%	24.80%
Debt/Equity ratio	0.2	0.2
Cost of debt	4.00%	4.50%

After-tax WACC	7.5%	9.4%


Selected WACC	8.4%

AALB.AS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for AALB.AS:

cost_of_equity (9.50%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (1.14) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.