ALMUN.PA WACC - Weighted Average Cost of Capital
The WACC of Munic SA (ALMUN.PA) is 5.3%.
| Range | Selected | |
| Cost of equity | 5.5% - 8.6% | 7.05% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 6.0% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.43 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 8.6% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 1.09 | 1.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 6.0% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALMUN.PA | Munic SA | 1.09 | 0.3 | 0.17 |
| ALMIC.PA | Micropole SA | 0.34 | 0.02 | 0.02 |
| ATEME.PA | Ateme SA | 0.66 | 0.14 | 0.1 |
| CEK.DE | CeoTronics Audio Video Data Communication AG | 0.15 | 1.41 | 1.27 |
| ENET.L | Ethernity Networks Ltd | 0.79 | 0.06 | 0.04 |
| FTC.L | Filtronic PLC | 0.01 | 1.52 | 1.51 |
| OPTI.BR | Crescent NV | 0.28 | 0.57 | 0.47 |
| RTX.CO | Rtx A/S | 0.08 | 0.07 | 0.06 |
| SAF1R.RG | SAF Tehnika AS | 0.1 | -0.01 | -0.01 |
| SRT.L | SRT Marine Systems PLC | 0.08 | 0.89 | 0.84 |
| Low | High | |
| Unlevered beta | 0.08 | 0.29 |
| Relevered beta | 0.15 | 0.52 |
| Adjusted relevered beta | 0.43 | 0.68 |
ALMUN.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 ALMUN.PA:
cost_of_equity (7.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.43) + 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.