ALCTL.IS WACC - Weighted Average Cost of Capital
The WACC of Alcatel Lucent Teletas Telekomunikasyon AS (ALCTL.IS) is 29.9%.
| Range | Selected | |
| Cost of equity | 28.9% - 32.4% | 30.65% |
| Tax rate | 29.5% - 37.5% | 33.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 28.2% - 31.6% | 29.9% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.75 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 28.9% | 32.4% |
| Tax rate | 29.5% | 37.5% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 28.2% | 31.6% |
| Selected WACC | 29.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALCTL.IS | Alcatel Lucent Teletas Telekomunikasyon AS | 0.03 | 0.52 | 0.51 |
| AMO.L | Amino Technologies PLC | 0.02 | 0.87 | 0.86 |
| ATEME.PA | Ateme SA | 0.58 | 0.14 | 0.1 |
| BVC.L | Batm Advanced Communications Ltd | 0.09 | 0.32 | 0.3 |
| EKI.PA | Ekinops SA | 0.28 | 0.62 | 0.52 |
| EVS.BR | Evs Broadcast Equipment SA | 0.03 | 0.81 | 0.8 |
| KAREL.IS | Karel Elektronik Sanayi ve Ticaret AS | 0.31 | 1.37 | 1.13 |
| NETAS.IS | Netas Telekomunikasyon AS | 0.53 | 1.34 | 0.98 |
| PARRO.PA | Parrot SA | 0.03 | 0.66 | 0.65 |
| ZENT.BR | Zenitel SA | 0.06 | 0.54 | 0.52 |
| Low | High | |
| Unlevered beta | 0.52 | 0.71 |
| Relevered beta | 0.63 | 0.85 |
| Adjusted relevered beta | 0.75 | 0.9 |
ALCTL.IS'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 ALCTL.IS:
cost_of_equity (30.65%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.75) + 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.