ALDRV.PA WACC - Weighted Average Cost of Capital
The WACC of Drone Volt SA (ALDRV.PA) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.4% | 6.9% |
| Tax rate | 24.5% - 25.8% | 25.15% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.3% - 7.7% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 0.34 | 0.62 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.4% | 8.4% |
| Tax rate | 24.5% | 25.8% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.3% | 7.7% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALDRV.PA | Drone Volt SA | 0.31 | 0.54 | 0.44 |
| ALI2S.PA | I2S SA | 0.26 | -0.18 | -0.15 |
| ALM.PA | Alpha MOS SA | 0.1 | -1.1 | -1.02 |
| GEA.PA | Gea Grenobloise Electronique Automatisme SA | 0 | 0.1 | 0.1 |
| GID.PA | Egide SA | 0.69 | 0.68 | 0.45 |
| OTAQ.L | OTAQ PLC | 0.97 | -0.77 | -0.44 |
| SERT.ST | Serstech AB | 1.01 | 0.3 | 0.17 |
| SNT.L | Sabien Technology Group PLC | 0.07 | 0.5 | 0.47 |
| WPAY.ST | Westpay AB | 0.05 | 0.66 | 0.64 |
| WPHO.L | Windar Photonics PLC | 0.03 | -0.29 | -0.28 |
| Low | High | |
| Unlevered beta | 0 | 0.28 |
| Relevered beta | 0.01 | 0.43 |
| Adjusted relevered beta | 0.34 | 0.62 |
ALDRV.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 ALDRV.PA:
cost_of_equity (6.90%) = risk_free_rate (2.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.34) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.