ALWIT.PA WACC - Weighted Average Cost of Capital
The WACC of Witbe SA (ALWIT.PA) is 7.0%.
| Range | Selected | |
| Cost of equity | 7.5% - 9.3% | 8.4% |
| Tax rate | 0.5% - 0.7% | 0.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 7.5% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.77 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 9.3% |
| Tax rate | 0.5% | 0.7% |
| Debt/Equity ratio | 0.69 | 0.69 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 7.5% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALWIT.PA | Witbe SA | 0.69 | 0.64 | 0.38 |
| Low | High | |
| Unlevered beta | 0.38 | 0.38 |
| Relevered beta | 0.66 | 0.67 |
| Adjusted relevered beta | 0.77 | 0.78 |
ALWIT.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 ALWIT.PA:
cost_of_equity (8.40%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.77) + 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.