ALMDG.PA WACC - Weighted Average Cost of Capital
The WACC of Mgi Digital Technology SA (ALMDG.PA) is 8.4%.
| Range | Selected | |
| Cost of equity | 7.6% - 10.4% | 9% |
| Tax rate | 14.7% - 17.3% | 16% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 9.6% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.79 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 10.4% |
| Tax rate | 14.7% | 17.3% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 9.6% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALMDG.PA | Mgi Digital Technology SA | 0.15 | 0.99 | 0.88 |
| ALJXR.PA | Archos SA | 0.57 | 0.07 | 0.05 |
| ALTVO.PA | Evolis SA | 0.01 | 0.39 | 0.38 |
| CIB.PA | Cibox Inter@ctive SA | 0.74 | 1.15 | 0.72 |
| CNC.L | Concurrent Technologies PLC | 0 | 1.63 | 1.63 |
| ETH.MI | Eurotech SpA | 0.95 | 0.81 | 0.45 |
| GUI.PA | Guillemot Corporation SA | 0.1 | 0.84 | 0.77 |
| MXC.WA | MaxCom SA | 1.14 | 0.18 | 0.09 |
| PKART.IS | Plastikkart Akilli Kart Iletisim Sistemleri Sanayi ve Ticaret AS | 0 | 1.01 | 1.01 |
| XAR.L | Xaar PLC | 0.08 | 1.31 | 1.23 |
| Low | High | |
| Unlevered beta | 0.61 | 0.82 |
| Relevered beta | 0.69 | 0.93 |
| Adjusted relevered beta | 0.79 | 0.95 |
ALMDG.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 ALMDG.PA:
cost_of_equity (9.00%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.79) + 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.