ALMY.AT WACC - Weighted Average Cost of Capital

The WACC of Alumil Aluminium Industry SA (ALMY.AT) is 8.1%.

The Cost of Equity of Alumil Aluminium Industry SA (ALMY.AT) is 10.85%.

The Cost of Debt of Alumil Aluminium Industry SA (ALMY.AT) is 7.00%.

	Range	Selected
Cost of equity	9.50% - 12.20%	10.85%
Tax rate	18.40% - 23.20%	20.80%
Cost of debt	5.40% - 8.60%	7.00%
WACC	6.9% - 9.3%	8.1%

WACC

ALMY.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.71	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.20%

Tax rate	18.40%	23.20%
Debt/Equity ratio	1.06	1.06
Cost of debt	5.40%	8.60%

After-tax WACC	6.9%	9.3%


Selected WACC	8.1%

ALMY.AT'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 ALMY.AT:

cost_of_equity (10.85%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.71) + 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.