ALDBT.PA
DBT SA
Price:  
0.45 
EUR
Volume:  
21,097.00
France | Electrical Equipment
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ALDBT.PA WACC - Weighted Average Cost of Capital

The WACC of DBT SA (ALDBT.PA) is 5.4%.

The Cost of Equity of DBT SA (ALDBT.PA) is 6.90%.
The Cost of Debt of DBT SA (ALDBT.PA) is 5.00%.

Range Selected
Cost of equity 5.50% - 8.30% 6.90%
Tax rate 0.20% - 1.00% 0.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.1% - 5.8% 5.4%
WACC

ALDBT.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.42 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.30%
Tax rate 0.20% 1.00%
Debt/Equity ratio 2.97 2.97
Cost of debt 5.00% 5.00%
After-tax WACC 5.1% 5.8%
Selected WACC 5.4%

ALDBT.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 ALDBT.PA:

cost_of_equity (6.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.42) + 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.