ALMY.AT WACC - Weighted Average Cost of Capital

The WACC of Alumil Aluminium Industry SA (ALMY.AT) is 7.6%.

The Cost of Equity of Alumil Aluminium Industry SA (ALMY.AT) is 10.80%.

The Cost of Debt of Alumil Aluminium Industry SA (ALMY.AT) is 6.15%.

	Range	Selected
Cost of equity	9.10% - 12.50%	10.80%
Tax rate	18.40% - 23.20%	20.80%
Cost of debt	5.40% - 6.90%	6.15%
WACC	6.6% - 8.7%	7.6%

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	0.66	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	12.50%

Tax rate	18.40%	23.20%
Debt/Equity ratio	1.14	1.14
Cost of debt	5.40%	6.90%

After-tax WACC	6.6%	8.7%


Selected WACC	7.6%

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 (10.80%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.66) + 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.