ALL.WA WACC - Weighted Average Cost of Capital

The WACC of Ailleron SA (ALL.WA) is 10.9%.

The Cost of Equity of Ailleron SA (ALL.WA) is 15.80%.

The Cost of Debt of Ailleron SA (ALL.WA) is 7.35%.

	Range	Selected
Cost of equity	12.90% - 18.70%	15.80%
Tax rate	25.90% - 31.50%	28.70%
Cost of debt	7.00% - 7.70%	7.35%
WACC	9.3% - 12.4%	10.9%

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	1.17	1.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	18.70%

Tax rate	25.90%	31.50%
Debt/Equity ratio	0.88	0.88
Cost of debt	7.00%	7.70%

After-tax WACC	9.3%	12.4%


Selected WACC	10.9%

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 (15.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.17) + 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.