ALLHB.PA WACC - Weighted Average Cost of Capital
The WACC of Les Hotels Baverez SA (ALLHB.PA) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.0% | 6% |
| Tax rate | 7.3% - 13.0% | 10.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 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 | 0.34 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 7.0% |
| Tax rate | 7.3% | 13.0% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.8% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALLHB.PA | Les Hotels Baverez SA | 0.08 | -0.28 | -0.26 |
| GPA.LS | Imobiliaria Construtora Grao Para SA | 0.83 | -0.05 | -0.03 |
| HDP.PA | Les Hotels de Paris SA | 9.99 | 0.16 | 0.02 |
| IGV.MI | I Grandi Viaggi SpA | 0.06 | 0.3 | 0.28 |
| INF.WA | Interferie SA | 0.37 | 0.58 | 0.44 |
| MARTI.IS | Marti Otel Isletmeleri AS | 4.84 | 1.23 | 0.23 |
| MLHOT.PA | Hotelim SA | 0.21 | -0.91 | -0.77 |
| SSTY.L | Safestay PLC | 3.62 | -0.45 | -0.11 |
| ULAS.IS | Ulaslar Turizm Yatirimlari ve Dayanikli Tuketim Mallari Ticaret Pazarlama AS | 0.01 | 1.43 | 1.42 |
| WXF.VI | Warimpex Finanz und Beteiligungs AG | 5.01 | 0.75 | 0.14 |
| Low | High | |
| Unlevered beta | 0 | 0.18 |
| Relevered beta | 0.01 | 0.16 |
| Adjusted relevered beta | 0.34 | 0.44 |
ALLHB.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 ALLHB.PA:
cost_of_equity (6.00%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.34) + 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.