ALKKO.PA WACC - Weighted Average Cost of Capital
The WACC of Kko International SA (ALKKO.PA) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.6% | 6.3% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 6.6% - 6.6% | 6.6% |
| WACC | 5.0% - 6.8% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.35 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 7.6% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 0.38 | 0.38 |
| Cost of debt | 6.6% | 6.6% |
| After-tax WACC | 5.0% | 6.8% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALKKO.PA | Kko International SA | 0.38 | -1.13 | -0.88 |
| AGRO.L | Ros Agro PLC | 2.21 | 0.88 | 0.33 |
| BEP.WA | Biomass Energy Project SA | 0.02 | 0.52 | 0.51 |
| BFG.MI | BF SpA | 0.33 | 0.03 | 0.03 |
| DQ7A.IR | Donegal Investment Group PLC | 0.04 | -0.34 | -0.33 |
| GTK.DE | Tonkens Agrar AG | 1.32 | 0.04 | 0.02 |
| SIP.BR | Sipef NV | 0 | -0.02 | -0.02 |
| TACTR.IS | Tac Tarim Urunleri Hayvancilik Gida Sanayi ve Ticaret AS | 0.02 | 1.62 | 1.59 |
| UIE.CO | United International Enterprises Ltd | 0 | 0.11 | 0.11 |
| YAPRK.IS | Yaprak Sut ve Besi Ciftlikleri Sanayi ve Ticaret AS | 0.03 | 1.69 | 1.66 |
| Low | High | |
| Unlevered beta | 0.02 | 0.2 |
| Relevered beta | 0.03 | 0.3 |
| Adjusted relevered beta | 0.35 | 0.53 |
ALKKO.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 ALKKO.PA:
cost_of_equity (6.30%) = 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.