ALWEC.PA WACC - Weighted Average Cost of Capital
The WACC of We. Connect SA (ALWEC.PA) is 7.7%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.0% | 9.55% |
| Tax rate | 22.1% - 24.5% | 23.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 8.7% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.88 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.0% |
| Tax rate | 22.1% | 24.5% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 8.7% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALWEC.PA | We. Connect SA | 0.46 | 0.5 | 0.37 |
| ASB.WA | ASBISc Enterprises PLC | 0.72 | 0.99 | 0.63 |
| BOREO.HE | Boreo Oyj | 0.96 | 0.34 | 0.19 |
| CBTT B.ST | Christian Berner Tech Trade AB | 0.3 | 0.93 | 0.76 |
| CPI.AT | CPI SA | 1.08 | 1.51 | 0.83 |
| DESPC.IS | Despec Bilgisayar Pazarlama ve Ticaret AS | 0.58 | 0.81 | 0.56 |
| DGATE.IS | Datagate Bilgisayar Malzemeleri Ticaret AS | 0.55 | 1.44 | 1.01 |
| INDES.IS | Indeks Bilgisayar Sistemleri Muhendislik Sanayi ve Ticaret AS | 0.45 | 1.12 | 0.83 |
| S4E.WA | S4E SA | 0.02 | 0.46 | 0.46 |
| SES.MI | Sesa SpA | 0.35 | 1.23 | 0.97 |
| Low | High | |
| Unlevered beta | 0.6 | 0.78 |
| Relevered beta | 0.82 | 1.03 |
| Adjusted relevered beta | 0.88 | 1.02 |
ALWEC.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 ALWEC.PA:
cost_of_equity (9.55%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.88) + 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.