ALX.AS WACC - Weighted Average Cost of Capital

The WACC of Alumexx NV (ALX.AS) is 23.8%.

The Cost of Equity of Alumexx NV (ALX.AS) is 8.60%.

The Cost of Debt of Alumexx NV (ALX.AS) is 35.40%.

	Range	Selected
Cost of equity	6.40% - 10.80%	8.60%
Tax rate	17.00% - 19.00%	18.00%
Cost of debt	19.60% - 51.20%	35.40%
WACC	13.8% - 33.8%	23.8%

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	0.75	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	10.80%

Tax rate	17.00%	19.00%
Debt/Equity ratio	2.99	2.99
Cost of debt	19.60%	51.20%

After-tax WACC	13.8%	33.8%


Selected WACC	23.8%

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 (8.60%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.75) + 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.