ALM.PA WACC - Weighted Average Cost of Capital
The WACC of Alpha MOS SA (ALM.PA) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.2% | 6.8% |
| Tax rate | 0.0% - 0.2% | 0.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 7.9% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 0.34 | 0.58 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.4% | 8.2% |
| Tax rate | 0.0% | 0.2% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 7.9% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALM.PA | Alpha MOS SA | 0.1 | -1.1 | -1 |
| ALI2S.PA | I2S SA | 0.25 | -0.24 | -0.19 |
| GEA.PA | Gea Grenobloise Electronique Automatisme SA | 0 | 0.29 | 0.29 |
| GID.PA | Egide SA | 0.69 | 0.68 | 0.4 |
| IGE.L | Image Scan Holdings PLC | 0.06 | 0 | 0 |
| OTAQ.L | OTAQ PLC | 0.97 | -0.77 | -0.39 |
| SERT.ST | Serstech AB | 0.89 | 0.46 | 0.24 |
| SNT.L | Sabien Technology Group PLC | 0.09 | 0.31 | 0.28 |
| WPAY.ST | Westpay AB | 0.04 | 0.74 | 0.72 |
| WPHO.L | Windar Photonics PLC | 0.03 | -0.02 | -0.02 |
| Low | High | |
| Unlevered beta | -0.01 | 0.26 |
| Relevered beta | 0.01 | 0.37 |
| Adjusted relevered beta | 0.34 | 0.58 |
ALM.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 ALM.PA:
cost_of_equity (6.80%) = risk_free_rate (2.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.34) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.