ALODI.PA WACC - Weighted Average Cost of Capital
The WACC of O2I SA (ALODI.PA) is 7.4%.
| Range | Selected | |
| Cost of equity | 10.2% - 15.2% | 12.7% |
| Tax rate | 9.8% - 23.9% | 16.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.2% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 1.46 | 1.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.2% | 15.2% |
| Tax rate | 9.8% | 23.9% |
| Debt/Equity ratio | 1.63 | 1.63 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.2% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALODI.PA | O2I SA | 1.63 | 1.81 | 0.75 |
| ALEMK.BR | Emakina Group SA | 0.14 | 1.49 | 1.32 |
| ATD.WA | Atende SA | 0.2 | 0.21 | 0.18 |
| CAG.ST | CAG Group AB | 0.07 | 0.19 | 0.18 |
| CTAC.AS | Ctac NV | 0.18 | -0.02 | -0.02 |
| DBA.MI | DBA Group SpA | 0.4 | 0.15 | 0.11 |
| SGN.WA | Sygnity SA | 0.01 | 0.39 | 0.39 |
| SPACE.AT | Space Hellas SA | 1.99 | 0.61 | 0.22 |
| TRD.L | Triad Group PLC | 0.02 | 0.7 | 0.69 |
| WSTEP.OL | Webstep ASA | 0.32 | 0.34 | 0.26 |
| Low | High | |
| Unlevered beta | 0.21 | 0.31 |
| Relevered beta | 1.69 | 2.3 |
| Adjusted relevered beta | 1.46 | 1.87 |
ALODI.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 ALODI.PA:
cost_of_equity (12.70%) = risk_free_rate (2.85%) + equity_risk_premium (5.70%) * adjusted_beta (1.46) + 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.