ALB.MC WACC - Weighted Average Cost of Capital
The WACC of Corporacion Financiera Alba SA (ALB.MC) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.3% | 8.05% |
| Tax rate | 2.6% - 3.0% | 2.8% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.5% - 9.0% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.5 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.3% |
| Tax rate | 2.6% | 3.0% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.5% | 9.0% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALB.MC | Corporacion Financiera Alba SA | 0.12 | -0.77 | -0.69 |
| COMB.BR | Compagnie du Bois Sauvage SA | 0.28 | 0.69 | 0.54 |
| CRED A.ST | Creades AB (publ) | 0 | 1.17 | 1.17 |
| FFP.PA | FFP SA | 0.47 | 1.51 | 1.04 |
| GLYHO.IS | Global Yatirim Holding AS | 4.54 | 0.75 | 0.14 |
| IF.MI | Banca IFIS SpA | 4.29 | 1.12 | 0.22 |
| MIT.MI | Mittel SpA | 0.32 | 0.3 | 0.23 |
| ORES.ST | Investment Oresund AB | 0 | 0.55 | 0.55 |
| TSKB.IS | Turkiye Sinai Kalkinma Bankasi AS | 10.5 | 0.64 | 0.06 |
| TTT.MI | TitanMet SpA | 0.12 | 0.3 | 0.27 |
| Low | High | |
| Unlevered beta | 0.22 | 0.38 |
| Relevered beta | 0.25 | 0.42 |
| Adjusted relevered beta | 0.5 | 0.61 |
ALB.MC'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 ALB.MC:
cost_of_equity (8.05%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.5) + 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.