ALEUP.PA WACC - Weighted Average Cost of Capital

The WACC of Europlasma SA (ALEUP.PA) is 16.5%.

The Cost of Equity of Europlasma SA (ALEUP.PA) is 5.85%.

The Cost of Debt of Europlasma SA (ALEUP.PA) is 20.50%.

	Range	Selected
Cost of equity	5.00% - 6.70%	5.85%
Tax rate	0.90% - 1.80%	1.35%
Cost of debt	7.00% - 34.00%	20.50%
WACC	6.4% - 26.5%	16.5%

WACC

ALEUP.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.35	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.00%	6.70%

Tax rate	0.90%	1.80%
Debt/Equity ratio	2.88	2.88
Cost of debt	7.00%	34.00%

After-tax WACC	6.4%	26.5%


Selected WACC	16.5%

ALEUP.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 ALEUP.PA:

cost_of_equity (5.85%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.35) + 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.