ALMIC.PA WACC - Weighted Average Cost of Capital
The WACC of Micropole SA (ALMIC.PA) is 7.5%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.0% | 8.7% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 4.0% - 6.1% | 5.05% |
| WACC | 6.3% - 8.6% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.76 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.0% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 0.34 | 0.34 |
| Cost of debt | 4.0% | 6.1% |
| After-tax WACC | 6.3% | 8.6% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALMIC.PA | Micropole SA | 0.34 | 0.02 | 0.02 |
| ALCTL.IS | Alcatel Lucent Teletas Telekomunikasyon AS | 0.03 | 0.52 | 0.51 |
| AMO.L | Amino Technologies PLC | 0.02 | 0.87 | 0.86 |
| ATEME.PA | Ateme SA | 0.74 | 0.28 | 0.18 |
| EKI.PA | Ekinops SA | 0.29 | 0.98 | 0.81 |
| EVS.BR | Evs Broadcast Equipment SA | 0.03 | 0.77 | 0.75 |
| KAREL.IS | Karel Elektronik Sanayi ve Ticaret AS | 0.31 | 1.37 | 1.12 |
| PARRO.PA | Parrot SA | 0.04 | 0.62 | 0.61 |
| RTX.CO | Rtx A/S | 0.09 | 0.03 | 0.03 |
| ZENT.BR | Zenitel SA | 0.06 | 0.54 | 0.52 |
| Low | High | |
| Unlevered beta | 0.51 | 0.66 |
| Relevered beta | 0.64 | 0.82 |
| Adjusted relevered beta | 0.76 | 0.88 |
ALMIC.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 ALMIC.PA:
cost_of_equity (8.70%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.76) + 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.