ALL.WA WACC - Weighted Average Cost of Capital

The WACC of Ailleron SA (ALL.WA) is 11.7%.

The Cost of Equity of Ailleron SA (ALL.WA) is 17.80%.

The Cost of Debt of Ailleron SA (ALL.WA) is 7.85%.

	Range	Selected
Cost of equity	14.70% - 20.90%	17.80%
Tax rate	17.30% - 25.00%	21.15%
Cost of debt	6.70% - 9.00%	7.85%
WACC	9.9% - 13.5%	11.7%

WACC

ALL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.45	1.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.70%	20.90%

Tax rate	17.30%	25.00%
Debt/Equity ratio	1.09	1.09
Cost of debt	6.70%	9.00%

After-tax WACC	9.9%	13.5%


Selected WACC	11.7%

ALL.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 ALL.WA:

cost_of_equity (17.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.45) + 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.