ALDEL.PA
Delfingen Industry SA
Price:  
25.00 
EUR
Volume:  
649.00
France | Auto Components
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ALDEL.PA WACC - Weighted Average Cost of Capital

The WACC of Delfingen Industry SA (ALDEL.PA) is 4.3%.

The Cost of Equity of Delfingen Industry SA (ALDEL.PA) is 9.20%.
The Cost of Debt of Delfingen Industry SA (ALDEL.PA) is 4.25%.

Range Selected
Cost of equity 6.80% - 11.60% 9.20%
Tax rate 34.30% - 45.30% 39.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.7% - 4.9% 4.3%
WACC

ALDEL.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.66 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 11.60%
Tax rate 34.30% 45.30%
Debt/Equity ratio 2.82 2.82
Cost of debt 4.00% 4.50%
After-tax WACC 3.7% 4.9%
Selected WACC 4.3%

ALDEL.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 ALDEL.PA:

cost_of_equity (9.20%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.66) + 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.