ALE.WA WACC - Weighted Average Cost of Capital

The WACC of Allegro.eu SA (ALE.WA) is 10.7%.

The Cost of Equity of Allegro.eu SA (ALE.WA) is 11.40%.

The Cost of Debt of Allegro.eu SA (ALE.WA) is 9.35%.

	Range	Selected
Cost of equity	10.20% - 12.60%	11.40%
Tax rate	18.60% - 22.40%	20.50%
Cost of debt	8.00% - 10.70%	9.35%
WACC	9.5% - 11.8%	10.7%

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	0.75	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	12.60%

Tax rate	18.60%	22.40%
Debt/Equity ratio	0.23	0.23
Cost of debt	8.00%	10.70%

After-tax WACC	9.5%	11.8%


Selected WACC	10.7%

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 (11.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.75) + 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.