ALACT.PA WACC - Weighted Average Cost of Capital
The WACC of Groupe Actiplay SA (ALACT.PA) is 5.4%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.2% | 8% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 5.9% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.65 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.2% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 1.49 | 1.49 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 5.9% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALACT.PA | Groupe Actiplay SA | 1.49 | 2.4 | 1.14 |
| ALINV.PA | Invibes Advertising NV | 0.8 | 0.47 | 0.3 |
| ALMNG.PA | Madvertise SA | 0.26 | 1.52 | 1.28 |
| DTR.WA | Digitree Group SA | 0.09 | -0.04 | -0.04 |
| FUL.MI | Fullsix SpA | 0.63 | 0.74 | 0.51 |
| IMS.WA | IMS SA | 0.19 | 0.31 | 0.27 |
| LRQ.WA | Larq SA | 0.49 | 0.01 | 0.01 |
| MDZ.L | Mediazest PLC | 1.72 | 0.38 | 0.17 |
| NAH.L | NAHL Group PLC | 0.46 | 0.99 | 0.74 |
| SAL.L | Spaceandpeople PLC | 0.47 | 0.44 | 0.33 |
| VE.MI | Visibilia Editore SpA | 0.31 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.27 | 0.33 |
| Relevered beta | 0.48 | 0.64 |
| Adjusted relevered beta | 0.65 | 0.76 |
ALACT.PA'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 ALACT.PA:
cost_of_equity (8.00%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.65) + 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.