ALM.MC WACC - Weighted Average Cost of Capital
The WACC of Almirall SA (ALM.MC) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.0% - 8.9% | 7.95% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.4% - 8.4% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.52 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 8.9% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.4% | 8.4% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALM.MC | Almirall SA | 0.17 | 0.62 | 0.55 |
| ALK B.CO | ALK-Abello A/S | 0.03 | 0.28 | 0.27 |
| APH.L | Alliance Pharma PLC | 0.27 | 0.27 | 0.22 |
| BOI.PA | Boiron SA | 0.04 | 0.31 | 0.3 |
| DMP.DE | Dermapharm Holding SE | 0.58 | 0.57 | 0.4 |
| KARO.ST | Karo Pharma AB | 0.35 | 0.15 | 0.12 |
| MITRA.BR | Mithra Pharmaceuticals SA | 15.81 | 0.76 | 0.06 |
| RJF.MC | Laboratorio Reig Jofre SA | 0.24 | 0.24 | 0.21 |
| ROVI.MC | Laboratorios Farmaceuticos ROVI SA | 0.04 | 0.53 | 0.51 |
| VIRP.PA | Virbac SA | 0.11 | 0.38 | 0.35 |
| Low | High | |
| Unlevered beta | 0.25 | 0.32 |
| Relevered beta | 0.28 | 0.36 |
| Adjusted relevered beta | 0.52 | 0.57 |
ALM.MC'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 ALM.MC:
cost_of_equity (7.95%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.52) + 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.