ATRUST.AT WACC - Weighted Average Cost of Capital
The WACC of Alpha Trust Mutual Fund and Alternative Investment Fund Management SA (ATRUST.AT) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.3% - 9.8% | 8.55% |
| Tax rate | 28.5% - 31.4% | 29.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.1% - 9.5% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 0.46 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 9.8% |
| Tax rate | 28.5% | 31.4% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.1% | 9.5% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ATRUST.AT | Alpha Trust Mutual Fund and Alternative Investment Fund Management SA | 0.05 | -0.04 | -0.04 |
| APQ.L | APQ Global Ltd | 28.19 | 1.48 | 0.07 |
| COP.MI | Copernico SIM SpA | 0.02 | 0.55 | 0.54 |
| FORRAS/T.BD | Forras Vagyonkezelesi es Befektetesi Nyrt | 1.4 | 0.45 | 0.23 |
| GRNYO.IS | Garanti Yatirim Ortakligi AS | 0.01 | 0.69 | 0.68 |
| LVEN.MI | LVenture Group SpA | 0.37 | 0.15 | 0.12 |
| NUQA.SG | Navigator Equity Solutions SE | 0.12 | 0.52 | 0.48 |
| SCM.MI | Solutions Capital Management SIM SpA | 0.21 | 0.38 | 0.33 |
| VKFYO.IS | Vakif Menkul Kiymet Yatirim Ortakligi AS | 0 | 0.34 | 0.34 |
| WPB.VI | Wiener Privatbank SE | 0.38 | 0.15 | 0.12 |
| Low | High | |
| Unlevered beta | 0.18 | 0.33 |
| Relevered beta | 0.19 | 0.34 |
| Adjusted relevered beta | 0.46 | 0.56 |
ATRUST.AT'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 ATRUST.AT:
cost_of_equity (8.55%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * 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.