ALENE.PA
Enertime SAS
Price:  
0.22 
EUR
Volume:  
33,150.00
France | Electrical Equipment
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ALENE.PA WACC - Weighted Average Cost of Capital

The WACC of Enertime SAS (ALENE.PA) is 6.3%.

The Cost of Equity of Enertime SAS (ALENE.PA) is 7.85%.
The Cost of Debt of Enertime SAS (ALENE.PA) is 5.00%.

Range Selected
Cost of equity 6.30% - 9.40% 7.85%
Tax rate 6.80% - 8.50% 7.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.5% - 7.1% 6.3%
WACC

ALENE.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.58 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 9.40%
Tax rate 6.80% 8.50%
Debt/Equity ratio 0.94 0.94
Cost of debt 5.00% 5.00%
After-tax WACC 5.5% 7.1%
Selected WACC 6.3%

ALENE.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 ALENE.PA:

cost_of_equity (7.85%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.58) + 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.