ALI2S.PA
I2S SA
Price:  
7.00 
EUR
Volume:  
179.00
France | Electronic Equipment, Instruments & Components
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ALI2S.PA WACC - Weighted Average Cost of Capital

The WACC of I2S SA (ALI2S.PA) is 5.4%.

The Cost of Equity of I2S SA (ALI2S.PA) is 5.75%.
The Cost of Debt of I2S SA (ALI2S.PA) is 5.00%.

Range Selected
Cost of equity 4.60% - 6.90% 5.75%
Tax rate 18.80% - 30.60% 24.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.5% - 6.2% 5.4%
WACC

ALI2S.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.28 0.42
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.60% 6.90%
Tax rate 18.80% 30.60%
Debt/Equity ratio 0.24 0.24
Cost of debt 5.00% 5.00%
After-tax WACC 4.5% 6.2%
Selected WACC 5.4%

ALI2S.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 ALI2S.PA:

cost_of_equity (5.75%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.28) + 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.