ALNSE.PA
NSE SA
Price:  
43.60 
EUR
Volume:  
365.00
France | Aerospace & Defense
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ALNSE.PA WACC - Weighted Average Cost of Capital

The WACC of NSE SA (ALNSE.PA) is 8.6%.

The Cost of Equity of NSE SA (ALNSE.PA) is 8.90%.
The Cost of Debt of NSE SA (ALNSE.PA) is 4.25%.

Range Selected
Cost of equity 7.60% - 10.20% 8.90%
Tax rate 27.00% - 29.60% 28.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.4% - 9.9% 8.6%
WACC

ALNSE.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.8 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.20%
Tax rate 27.00% 29.60%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 4.50%
After-tax WACC 7.4% 9.9%
Selected WACC 8.6%

ALNSE.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 ALNSE.PA:

cost_of_equity (8.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.8) + 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.