ALR.WA WACC - Weighted Average Cost of Capital

The WACC of Alior Bank SA (ALR.WA) is 11.6%.

The Cost of Equity of Alior Bank SA (ALR.WA) is 12.80%.

The Cost of Debt of Alior Bank SA (ALR.WA) is 5.00%.

	Range	Selected
Cost of equity	11.30% - 14.30%	12.80%
Tax rate	24.40% - 28.60%	26.50%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.3% - 12.9%	11.6%

WACC

ALR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.91	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.30%

Tax rate	24.40%	28.60%
Debt/Equity ratio	0.15	0.15
Cost of debt	5.00%	5.00%

After-tax WACC	10.3%	12.9%


Selected WACC	11.6%

ALR.WA'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 ALR.WA:

cost_of_equity (12.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.91) + 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.