The WACC of Visiativ SA (ALVIV.PA) is 7.0%.
Range | Selected | |
Cost of equity | 8.0% - 10.4% | 9.2% |
Tax rate | 24.8% - 31.0% | 27.9% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.3% - 7.7% | 7.0% |
Category | Low | High |
Long-term bond rate | 3.0% | 3.5% |
Equity market risk premium | 5.8% | 6.8% |
Adjusted beta | 0.86 | 0.94 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.0% | 10.4% |
Tax rate | 24.8% | 31.0% |
Debt/Equity ratio | 0.66 | 0.66 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.3% | 7.7% |
Selected WACC | 7.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ALVIV.PA | Visiativ SA | 0.66 | 1.17 | 0.79 |
4IG.BD | 4iG Nyrt | 1.67 | 1.06 | 0.47 |
ALPRO.PA | Prodware SA | 2.06 | 0.23 | 0.09 |
ALUMS.PA | Umanis SA | 0.21 | 0.68 | 0.59 |
CMP.WA | Comp SA | 0.13 | 0.72 | 0.66 |
INF.PA | Infotel SA | 0.12 | 0.19 | 0.17 |
KSC.DE | KPS AG | 1.46 | 0.38 | 0.19 |
PRO.WA | APN Promise SA | 0.01 | 1.11 | 1.1 |
SQI.PA | Sqli SA | 0.21 | 1.17 | 1.01 |
SX.PA | CS Group SA | 0.5 | 0.78 | 0.57 |
Low | High | |
Unlevered beta | 0.53 | 0.62 |
Relevered beta | 0.79 | 0.91 |
Adjusted relevered beta | 0.86 | 0.94 |
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 ALVIV.PA:
cost_of_equity (9.20%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.86) + 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.