ALEMV.PA WACC - Weighted Average Cost of Capital
The WACC of Emova Group SA (ALEMV.PA) is 4.7%.
| Range | Selected | |
| Cost of equity | 5.0% - 6.9% | 5.95% |
| Tax rate | 11.8% - 13.4% | 12.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 4.9% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.34 | 0.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 6.9% |
| Tax rate | 11.8% | 13.4% |
| Debt/Equity ratio | 3.22 | 3.22 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 4.9% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALEMV.PA | Emova Group SA | 3.22 | -0.04 | -0.01 |
| AVT.PA | Avenir Telecom SA | 0.98 | -0.54 | -0.29 |
| IPO.WA | Intersport Polska SA | 0.97 | 0.25 | 0.14 |
| MATAS.CO | Matas A/S | 0.75 | 0.28 | 0.17 |
| NAKAS.AT | Philippos Nakas SA | 0.25 | 0.06 | 0.05 |
| OXY.WA | Oxygen SA | 0.13 | 0 | 0 |
| SCHO.L | Scholium Group PLC | 0.38 | -0.06 | -0.05 |
| SGI.L | Stanley Gibbons Group PLC | 3.42 | 1.23 | 0.31 |
| WRKS.L | Works co uk PLC | 2.04 | 0.08 | 0.03 |
| BWTL | Bowlin Travel Centers Inc | 0.37 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0.01 | 0.04 |
| Relevered beta | 0.01 | 0.13 |
| Adjusted relevered beta | 0.34 | 0.42 |
ALEMV.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 ALEMV.PA:
cost_of_equity (5.95%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.34) + 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.