ALLA.BK WACC - Weighted Average Cost of Capital

The WACC of Alla PCL (ALLA.BK) is 9.2%.

The Cost of Equity of Alla PCL (ALLA.BK) is 9.30%.

The Cost of Debt of Alla PCL (ALLA.BK) is 9.70%.

	Range	Selected
Cost of equity	7.90% - 10.70%	9.30%
Tax rate	19.80% - 19.90%	19.85%
Cost of debt	4.00% - 15.40%	9.70%
WACC	7.7% - 10.7%	9.2%

WACC

ALLA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.72	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.70%

Tax rate	19.80%	19.90%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	15.40%

After-tax WACC	7.7%	10.7%


Selected WACC	9.2%

ALLA.BK'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 ALLA.BK:

cost_of_equity (9.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.72) + 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.