ALR.WA
Alior Bank SA
Price:  
98.52 
PLN
Volume:  
321,533.00
Poland | Banks
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ALR.WA WACC - Weighted Average Cost of Capital

The WACC of Alior Bank SA (ALR.WA) is 10.6%.

The Cost of Equity of Alior Bank SA (ALR.WA) is 11.95%.
The Cost of Debt of Alior Bank SA (ALR.WA) is 5.00%.

Range Selected
Cost of equity 10.00% - 13.90% 11.95%
Tax rate 30.40% - 35.70% 33.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.9% - 12.2% 10.6%
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 0.71 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.00% 13.90%
Tax rate 30.40% 35.70%
Debt/Equity ratio 0.19 0.19
Cost of debt 5.00% 5.00%
After-tax WACC 8.9% 12.2%
Selected WACC 10.6%

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 (11.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.71) + 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.