ALE.WA WACC - Weighted Average Cost of Capital

The WACC of Allegro.eu SA (ALE.WA) is 11.0%.

The Cost of Equity of Allegro.eu SA (ALE.WA) is 11.85%.

The Cost of Debt of Allegro.eu SA (ALE.WA) is 8.65%.

	Range	Selected
Cost of equity	10.50% - 13.20%	11.85%
Tax rate	24.90% - 29.80%	27.35%
Cost of debt	6.60% - 10.70%	8.65%
WACC	9.7% - 12.3%	11.0%

WACC

ALE.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.79	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.20%

Tax rate	24.90%	29.80%
Debt/Equity ratio	0.18	0.18
Cost of debt	6.60%	10.70%

After-tax WACC	9.7%	12.3%


Selected WACC	11.0%

ALE.WA'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 ALE.WA:

cost_of_equity (11.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.79) + 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.