ALR.WA WACC - Weighted Average Cost of Capital

The WACC of Alior Bank SA (ALR.WA) is 11.1%.

The Cost of Equity of Alior Bank SA (ALR.WA) is 12.40%.

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

	Range	Selected
Cost of equity	10.60% - 14.20%	12.40%
Tax rate	30.40% - 35.70%	33.05%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.5% - 12.6%	11.1%

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	0.8	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	14.20%

Tax rate	30.40%	35.70%
Debt/Equity ratio	0.17	0.17
Cost of debt	5.00%	5.00%

After-tax WACC	9.5%	12.6%


Selected WACC	11.1%

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 (12.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * 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.