ALTA.PA
Altarea SCA
Price:  
102.00 
EUR
Volume:  
6,424.00
France | Equity Real Estate Investment Trusts (REITs)
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ALTA.PA WACC - Weighted Average Cost of Capital

The WACC of Altarea SCA (ALTA.PA) is 5.7%.

The Cost of Equity of Altarea SCA (ALTA.PA) is 8.05%.
The Cost of Debt of Altarea SCA (ALTA.PA) is 4.25%.

Range Selected
Cost of equity 6.70% - 9.40% 8.05%
Tax rate 13.00% - 14.10% 13.55%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.0% - 6.4% 5.7%
WACC

ALTA.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.63 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.40%
Tax rate 13.00% 14.10%
Debt/Equity ratio 1.15 1.15
Cost of debt 4.00% 4.50%
After-tax WACC 5.0% 6.4%
Selected WACC 5.7%

ALTA.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 ALTA.PA:

cost_of_equity (8.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.63) + 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.