ALPER.PA WACC - Weighted Average Cost of Capital
The WACC of La Perla Fashion Holding NV (ALPER.PA) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.5% | 6.45% |
| Tax rate | 1.0% - 1.2% | 1.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.7% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.42 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.5% |
| Tax rate | 1.0% | 1.2% |
| Debt/Equity ratio | 0.49 | 0.49 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.7% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALPER.PA | La Perla Fashion Holding NV | 0.49 | 0.28 | 0.19 |
| ADZ.MC | Adolfo Dominguez SA | 1.26 | 0.3 | 0.13 |
| ALTAN.PA | Le Tanneur et Cie SA | 0.31 | 0.84 | 0.65 |
| BORG.ST | Bjorn Borg AB | 0.04 | 0.59 | 0.57 |
| BUI.PA | Barbara Bui SA | 1.36 | -0.76 | -0.32 |
| CSP.MI | CSP International Fashion Group SpA | 1.61 | 0.04 | 0.02 |
| IIG.MI | Italia Independent Group SpA | 8.27 | 0.19 | 0.02 |
| ITM.WA | Interma Trade SA | 1.25 | -0.09 | -0.04 |
| PTR.MI | Pattern SpA | 0.4 | 0.27 | 0.19 |
| VAN.BR | Van de Velde NV | 0.03 | 0.68 | 0.66 |
| Low | High | |
| Unlevered beta | 0.09 | 0.19 |
| Relevered beta | 0.13 | 0.28 |
| Adjusted relevered beta | 0.42 | 0.52 |
ALPER.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 ALPER.PA:
cost_of_equity (6.45%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.42) + 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.