ALDAR.PA WACC - Weighted Average Cost of Capital
The WACC of Damartex SA (ALDAR.PA) is 5.5%.
| Range | Selected | |
| Cost of equity | 6.7% - 11.0% | 8.85% |
| Tax rate | 8.1% - 16.2% | 12.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.2% - 6.8% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.63 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 11.0% |
| Tax rate | 8.1% | 16.2% |
| Debt/Equity ratio | 4.74 | 4.74 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.2% | 6.8% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALDAR.PA | Damartex SA | 4.74 | 0.54 | 0.1 |
| AEF.MI | Aeffe SpA | 2.87 | 0.59 | 0.17 |
| CALN.SW | Calida Holding AG | 0.25 | 0.3 | 0.25 |
| CSP.MI | CSP International Fashion Group SpA | 1.64 | 0.04 | 0.02 |
| EAH.WA | Esotiq & Henderson SA | 0.42 | -0.05 | -0.04 |
| MAVI.IS | Mavi Giyim Sanayi ve Ticaret AS | 0.56 | 1.43 | 0.95 |
| MUL.L | Mulberry Group PLC | 1.41 | 0.08 | 0.04 |
| NEWA B.ST | New Wave Group AB | 0.15 | 1.03 | 0.91 |
| PQ.MI | Piquadro SpA | 0.66 | 0.09 | 0.06 |
| SFL.MI | Safilo Group SpA | 0.33 | 1.32 | 1.02 |
| Low | High | |
| Unlevered beta | 0.09 | 0.2 |
| Relevered beta | 0.45 | 1.03 |
| Adjusted relevered beta | 0.63 | 1.02 |
ALDAR.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 ALDAR.PA:
cost_of_equity (8.85%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.63) + 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.