ALPJT.PA WACC - Weighted Average Cost of Capital
The WACC of Poujoulat SA (ALPJT.PA) is 5.1%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.1% | 7.2% |
| Tax rate | 25.0% - 25.6% | 25.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.8% - 5.5% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.57 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.1% |
| Tax rate | 25.0% | 25.6% |
| Debt/Equity ratio | 1.5 | 1.5 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.8% | 5.5% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALPJT.PA | Poujoulat SA | 1.5 | 0.39 | 0.18 |
| ALLUX.PA | Installux SA | 0.41 | 0.03 | 0.02 |
| ECEL.L | Eurocell PLC | 0.41 | 0.26 | 0.2 |
| EGPRO.IS | Ege Profil Ticaret ve Sanayi AS | 0.13 | 1.34 | 1.21 |
| EPWN.L | Epwin Group PLC | 0.94 | 0.29 | 0.17 |
| FMM B.ST | FM Mattsson Mora Group AB | 0.04 | 0.13 | 0.12 |
| HAMO.BR | Hamon & Cie International SA | 12.83 | 1.69 | 0.16 |
| SFE.L | Safestyle UK PLC | 31.77 | 0.13 | 0.01 |
| SOM.MI | Somec SpA | 1.25 | 0.5 | 0.26 |
| VSS1R.RG | Valmieras Stikla Skiedra AS | 5.1 | 1.19 | 0.25 |
| Low | High | |
| Unlevered beta | 0.17 | 0.19 |
| Relevered beta | 0.36 | 0.4 |
| Adjusted relevered beta | 0.57 | 0.6 |
ALPJT.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 ALPJT.PA:
cost_of_equity (7.20%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.57) + 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.