ALELIO.ST
Alelion Energy Systems AB
Price:  
0.05 
SEK
Volume:  
174,802
Sweden | Electrical Equipment

ALELIO.ST WACC - Weighted Average Cost of Capital

The WACC of Alelion Energy Systems AB (ALELIO.ST) is 7.2%.

The Cost of Equity of Alelion Energy Systems AB (ALELIO.ST) is 6.5%.
The Cost of Debt of Alelion Energy Systems AB (ALELIO.ST) is 9.65%.

RangeSelected
Cost of equity5.3% - 7.7%6.5%
Tax rate20.6% - 20.9%20.75%
Cost of debt7.0% - 12.3%9.65%
WACC5.5% - 8.9%7.2%
WACC

ALELIO.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta0.460.61
Additional risk adjustments0.5%1.0%
Cost of equity5.3%7.7%
Tax rate20.6%20.9%
Debt/Equity ratio
1.561.56
Cost of debt7.0%12.3%
After-tax WACC5.5%8.9%
Selected WACC7.2%

ALELIO.ST'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 ALELIO.ST:

cost_of_equity (6.50%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.