ALI.WA WACC - Weighted Average Cost of Capital

The WACC of Altus Towarzystwo Funduszy Inwestycyjnych SA (ALI.WA) is 8.9%.

The Cost of Equity of Altus Towarzystwo Funduszy Inwestycyjnych SA (ALI.WA) is 8.75%.

The Cost of Debt of Altus Towarzystwo Funduszy Inwestycyjnych SA (ALI.WA) is 17.15%.

	Range	Selected
Cost of equity	7.70% - 9.80%	8.75%
Tax rate	25.00% - 27.10%	26.05%
Cost of debt	6.10% - 28.20%	17.15%
WACC	7.6% - 10.1%	8.9%

WACC

ALI.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.35	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	9.80%

Tax rate	25.00%	27.10%
Debt/Equity ratio	0.03	0.03
Cost of debt	6.10%	28.20%

After-tax WACC	7.6%	10.1%


Selected WACC	8.9%

ALI.WA'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 ALI.WA:

cost_of_equity (8.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * 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.