The WACC of Alelion Energy Systems AB (ALELIO.ST) is 7.2%.
Range | Selected | |
Cost of equity | 5.3% - 7.7% | 6.5% |
Tax rate | 20.6% - 20.9% | 20.75% |
Cost of debt | 7.0% - 12.3% | 9.65% |
WACC | 5.5% - 8.9% | 7.2% |
Category | Low | High |
Long-term bond rate | 2.5% | 3.0% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.46 | 0.61 |
Additional risk adjustments | 0.5% | 1.0% |
Cost of equity | 5.3% | 7.7% |
Tax rate | 20.6% | 20.9% |
Debt/Equity ratio | 1.56 | 1.56 |
Cost of debt | 7.0% | 12.3% |
After-tax WACC | 5.5% | 8.9% |
Selected WACC | 7.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ALELIO.ST | Alelion Energy Systems AB | 1.56 | 0.56 | 0.25 |
ENEDO.HE | Enedo Oyj | 0.66 | 0.22 | 0.14 |
GOV.WA | Govena Lighting SA | 0.04 | -0.02 | -0.02 |
LECN.SW | Leclanche SA | 0.41 | -2 | -1.51 |
LPA.L | LPA Group PLC | 0.41 | -0.72 | -0.54 |
LUG.WA | Lug SA | 1.97 | 0.33 | 0.13 |
NVV.WA | Novavis SA | 0.05 | 0.56 | 0.54 |
RLP.WA | Relpol SA | 0.48 | 0.03 | 0.02 |
SANEL.IS | SAN-EL Muhendislik Elektrik Taahhut Sanayi ve Ticaret AS | 0.01 | 0.71 | 0.71 |
SET.BD | Set Group Nyrt | 0.71 | 0.75 | 0.48 |
Low | High | |
Unlevered beta | 0.09 | 0.19 |
Relevered beta | 0.19 | 0.42 |
Adjusted relevered beta | 0.46 | 0.61 |
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.