The WACC of Montagne Et Neige Developpement SA (ALMND.PA) is 5.7%.
Range | Selected | |
Cost of equity | 5.3% - 7.0% | 6.15% |
Tax rate | 1.6% - 2.1% | 1.85% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.1% - 6.2% | 5.7% |
Category | Low | High |
Long-term bond rate | 3.0% | 3.5% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.39 | 0.44 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.3% | 7.0% |
Tax rate | 1.6% | 2.1% |
Debt/Equity ratio | 0.62 | 0.62 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.1% | 6.2% |
Selected WACC | 5.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ALMND.PA | Montagne Et Neige Developpement SA | 0.62 | 0.2 | 0.13 |
ABEO.PA | Abeo SAS | 1.46 | 0.15 | 0.06 |
ASCO.AT | AS Company SA | 0.02 | 0.84 | 0.82 |
CCT.L | Character Group PLC | 0.05 | -0.1 | -0.09 |
H9Y.DE | HanseYachts AG | 0.57 | -0.84 | -0.54 |
HRN.L | Hornby PLC | 0.72 | -0.54 | -0.32 |
RAP1V.HE | Rapala VMC Corp | 1.83 | 0.25 | 0.09 |
TND.L | Tandem Group PLC | 0.5 | 0.26 | 0.18 |
ULC.DE | United Labels AG | 0.73 | 0.39 | 0.23 |
WHH.WA | Werth Holz SA | 1.06 | 0.1 | 0.05 |
Low | High | |
Unlevered beta | 0.06 | 0.1 |
Relevered beta | 0.09 | 0.16 |
Adjusted relevered beta | 0.39 | 0.44 |
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 ALMND.PA:
cost_of_equity (6.15%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.39) + 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.