ALX.AS WACC - Weighted Average Cost of Capital

The WACC of Alumexx NV (ALX.AS) is 18.3%.

The Cost of Equity of Alumexx NV (ALX.AS) is 6.05%.

The Cost of Debt of Alumexx NV (ALX.AS) is 29.30%.

	Range	Selected
Cost of equity	4.90% - 7.20%	6.05%
Tax rate	17.00% - 22.50%	19.75%
Cost of debt	7.80% - 50.80%	29.30%
WACC	6.0% - 30.5%	18.3%

WACC

ALX.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.46	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	7.20%

Tax rate	17.00%	22.50%
Debt/Equity ratio	2.64	2.64
Cost of debt	7.80%	50.80%

After-tax WACC	6.0%	30.5%


Selected WACC	18.3%

ALX.AS'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 ALX.AS:

cost_of_equity (6.05%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + 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.