ALVG.PA WACC - Weighted Average Cost of Capital

The WACC of Veom Group SA (ALVG.PA) is 4.7%.

The Cost of Equity of Veom Group SA (ALVG.PA) is 13.20%.

The Cost of Debt of Veom Group SA (ALVG.PA) is 5.00%.

	Range	Selected
Cost of equity	11.50% - 14.90%	13.20%
Tax rate	18.10% - 21.40%	19.75%
Cost of debt	5.00% - 5.00%	5.00%
WACC	4.6% - 4.7%	4.7%

WACC

ALVG.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1.47	1.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	14.90%

Tax rate	18.10%	21.40%
Debt/Equity ratio	12.82	12.82
Cost of debt	5.00%	5.00%

After-tax WACC	4.6%	4.7%


Selected WACC	4.7%

ALVG.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 ALVG.PA:

cost_of_equity (13.20%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.47) + 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.