ALVIV.PA
Visiativ SA
Price:  
37 
EUR
Volume:  
162
France | IT Services

ALVIV.PA WACC - Weighted Average Cost of Capital

The WACC of Visiativ SA (ALVIV.PA) is 7.0%.

The Cost of Equity of Visiativ SA (ALVIV.PA) is 9.2%.
The Cost of Debt of Visiativ SA (ALVIV.PA) is 5%.

RangeSelected
Cost of equity8.0% - 10.4%9.2%
Tax rate24.8% - 31.0%27.9%
Cost of debt5.0% - 5.0%5%
WACC6.3% - 7.7%7.0%
WACC

ALVIV.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.860.94
Additional risk adjustments0.0%0.5%
Cost of equity8.0%10.4%
Tax rate24.8%31.0%
Debt/Equity ratio
0.660.66
Cost of debt5.0%5.0%
After-tax WACC6.3%7.7%
Selected WACC7.0%

ALVIV.PA WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.530.62
Relevered beta0.790.91
Adjusted relevered beta0.860.94

ALVIV.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 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.