ALEMV.PA
Emova Group SA
Price:  
0.71 
EUR
Volume:  
34,946
France | Specialty Retail

ALEMV.PA WACC - Weighted Average Cost of Capital

The WACC of Emova Group SA (ALEMV.PA) is 4.7%.

The Cost of Equity of Emova Group SA (ALEMV.PA) is 5.95%.
The Cost of Debt of Emova Group SA (ALEMV.PA) is 5%.

RangeSelected
Cost of equity5.0% - 6.9%5.95%
Tax rate11.8% - 13.4%12.6%
Cost of debt5.0% - 5.0%5%
WACC4.5% - 4.9%4.7%
WACC

ALEMV.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.340.42
Additional risk adjustments0.0%0.5%
Cost of equity5.0%6.9%
Tax rate11.8%13.4%
Debt/Equity ratio
3.223.22
Cost of debt5.0%5.0%
After-tax WACC4.5%4.9%
Selected WACC4.7%

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.