ALMND.PA
Montagne Et Neige Developpement SA
Price:  
0.9 
EUR
Volume:  
4,394
France | Leisure Products

ALMND.PA WACC - Weighted Average Cost of Capital

The WACC of Montagne Et Neige Developpement SA (ALMND.PA) is 5.7%.

The Cost of Equity of Montagne Et Neige Developpement SA (ALMND.PA) is 6.15%.
The Cost of Debt of Montagne Et Neige Developpement SA (ALMND.PA) is 5%.

RangeSelected
Cost of equity5.3% - 7.0%6.15%
Tax rate1.6% - 2.1%1.85%
Cost of debt5.0% - 5.0%5%
WACC5.1% - 6.2%5.7%
WACC

ALMND.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.390.44
Additional risk adjustments0.0%0.5%
Cost of equity5.3%7.0%
Tax rate1.6%2.1%
Debt/Equity ratio
0.620.62
Cost of debt5.0%5.0%
After-tax WACC5.1%6.2%
Selected WACC5.7%

ALMND.PA WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.060.1
Relevered beta0.090.16
Adjusted relevered beta0.390.44

ALMND.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 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.