ALDEV.PA WACC - Weighted Average Cost of Capital
The WACC of Devernois SA (ALDEV.PA) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.5% | 6.9% |
| Tax rate | 7.7% - 10.8% | 9.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.1% - 6.9% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.4 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.5% |
| Tax rate | 7.7% | 10.8% |
| Debt/Equity ratio | 2.54 | 2.54 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.1% | 6.9% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALDEV.PA | Devernois SA | 2.54 | 0.23 | 0.07 |
| BLT1T.TL | Baltika AS | 2.13 | 0.77 | 0.27 |
| BUI.PA | Barbara Bui SA | 1.03 | -0.93 | -0.49 |
| DERIM.IS | Derimod Konfeksiyon Ayakkabi Deri Sanayi ve Ticaret AS | 0.36 | 1.16 | 0.88 |
| DUR.AT | Duros SA | 7.37 | -0.06 | -0.01 |
| ELBE.AT | Elve SA | 0.02 | 0.28 | 0.27 |
| GJAJ.PA | Groupe JAJ SA | 0.95 | 0.88 | 0.48 |
| IIG.MI | Italia Independent Group SpA | 8.27 | 0.19 | 0.02 |
| ITM.WA | Interma Trade SA | 1.25 | -0.09 | -0.04 |
| RDN.WA | Redan SA | 14.41 | 0.51 | 0.04 |
| Low | High | |
| Unlevered beta | 0.03 | 0.15 |
| Relevered beta | 0.1 | 0.48 |
| Adjusted relevered beta | 0.4 | 0.65 |
ALDEV.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 ALDEV.PA:
cost_of_equity (6.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.4) + 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.