ALSAF.PA WACC - Weighted Average Cost of Capital

The WACC of Safe Orthopaedics SA (ALSAF.PA) is 3.8%.

The Cost of Equity of Safe Orthopaedics SA (ALSAF.PA) is 509.85%.

The Cost of Debt of Safe Orthopaedics SA (ALSAF.PA) is 5.00%.

	Range	Selected
Cost of equity	78.90% - 940.80%	509.85%
Tax rate	25.90% - 27.10%	26.50%
Cost of debt	5.00% - 5.00%	5.00%
WACC	3.7% - 4.0%	3.8%

WACC

ALSAF.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	13.04	137.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	78.90%	940.80%

Tax rate	25.90%	27.10%
Debt/Equity ratio	2967.49	2967.49
Cost of debt	5.00%	5.00%

After-tax WACC	3.7%	4.0%


Selected WACC	3.8%

ALSAF.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 ALSAF.PA:

cost_of_equity (509.85%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (13.04) + 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.