ALFLE.PA WACC - Weighted Average Cost of Capital
The WACC of Fleury Michon SA (ALFLE.PA) is 5.5%.
| Range | Selected | |
| Cost of equity | 7.5% - 12.3% | 9.9% |
| Tax rate | 31.2% - 37.1% | 34.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.8% - 6.2% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.77 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 12.3% |
| Tax rate | 31.2% | 37.1% |
| Debt/Equity ratio | 2.05 | 2.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.8% | 6.2% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALFLE.PA | Fleury Michon SA | 2.05 | 0.04 | 0.02 |
| BANVT.IS | Banvit Bandirma Vitaminli Yem Sanayi AS | 0.09 | 1.67 | 1.58 |
| DVO.L | Devro PLC | 0.2 | 1.06 | 0.94 |
| GOB.WA | Gobarto SA | 0.61 | 0.23 | 0.17 |
| LD.MI | La Doria SpA | 0.3 | 0.43 | 0.36 |
| MLK.WA | Milkiland NV | 5.71 | 1.09 | 0.23 |
| OLE.MC | Deoleo SA | 1.8 | 0.33 | 0.15 |
| TERB.BR | Ter Beke NV | 0.66 | 0.45 | 0.31 |
| ULUUN.IS | Ulusoy Un Sanayi ve Ticaret AS | 0.87 | 1.38 | 0.88 |
| ZMP1L.VS | Zemaitijos Pienas AB | 0.11 | 1.94 | 1.8 |
| Low | High | |
| Unlevered beta | 0.28 | 0.57 |
| Relevered beta | 0.66 | 1.33 |
| Adjusted relevered beta | 0.77 | 1.22 |
ALFLE.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 ALFLE.PA:
cost_of_equity (9.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.77) + 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.