ALMEC.PA WACC - Weighted Average Cost of Capital

The WACC of Mecelec Composites SA (ALMEC.PA) is 7.0%.

The Cost of Equity of Mecelec Composites SA (ALMEC.PA) is 10.15%.

The Cost of Debt of Mecelec Composites SA (ALMEC.PA) is 5.30%.

	Range	Selected
Cost of equity	7.50% - 12.80%	10.15%
Tax rate	17.70% - 46.10%	31.90%
Cost of debt	4.00% - 6.60%	5.30%
WACC	5.5% - 8.5%	7.0%

WACC

ALMEC.PA WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.2%	6.2%
Adjusted beta	0.93	1.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	12.80%

Tax rate	17.70%	46.10%
Debt/Equity ratio	0.86	0.86
Cost of debt	4.00%	6.60%

After-tax WACC	5.5%	8.5%


Selected WACC	7.0%

ALMEC.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 ALMEC.PA:

cost_of_equity (10.15%) = risk_free_rate (2.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.93) + 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.