The WACC of Ecoslops SA (ALESA.PA) is 7.8%.
Range | Selected | |
Cost of equity | 4.8% - 7.3% | 6.05% |
Tax rate | 10.8% - 14.3% | 12.55% |
Cost of debt | 4.0% - 14.8% | 9.4% |
WACC | 3.8% - 11.7% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.0% | 3.5% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.31 | 0.49 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.8% | 7.3% |
Tax rate | 10.8% | 14.3% |
Debt/Equity ratio | 4.77 | 4.77 |
Cost of debt | 4.0% | 14.8% |
After-tax WACC | 3.8% | 11.7% |
Selected WACC | 7.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ALESA.PA | Ecoslops SA | 4.77 | -0.16 | -0.03 |
COM.PA | Cnim Groupe SA | 11.4 | 1.47 | 0.14 |
GPE.PA | Groupe Pizzorno Environnement SA | 0.39 | -0.02 | -0.01 |
GRI.MC | Grino Ecologic SA | 0.55 | -0.17 | -0.12 |
GTS.WA | Geotrans SA | 0 | 0.21 | 0.21 |
MBR.WA | Mo-Bruk SA | 0.11 | 0.29 | 0.26 |
OBL.WA | Orzel Bialy SA | 0.01 | 0.11 | 0.11 |
OREGE.PA | Orege SA | 3.92 | -0.01 | 0 |
REAT.L | React Group PLC | 0.06 | -0.04 | -0.04 |
KUT.V | Redishred Capital Corp (Pre-Merger) | 0.39 | 0.01 | 0.01 |
Low | High | |
Unlevered beta | -0.01 | 0.05 |
Relevered beta | -0.03 | 0.24 |
Adjusted relevered beta | 0.31 | 0.49 |
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 ALESA.PA:
cost_of_equity (6.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.31) + 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.