AVLN.TA WACC - Weighted Average Cost of Capital

The WACC of Aviv Arlon Ltd (AVLN.TA) is 10.4%.

The Cost of Equity of Aviv Arlon Ltd (AVLN.TA) is 10.95%.

The Cost of Debt of Aviv Arlon Ltd (AVLN.TA) is 10.65%.

	Range	Selected
Cost of equity	9.90% - 12.00%	10.95%
Tax rate	17.50% - 24.40%	20.95%
Cost of debt	4.60% - 16.70%	10.65%
WACC	8.5% - 12.2%	10.4%

WACC

AVLN.TA WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	6.6%	7.6%
Adjusted beta	0.92	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	12.00%

Tax rate	17.50%	24.40%
Debt/Equity ratio	0.29	0.29
Cost of debt	4.60%	16.70%

After-tax WACC	8.5%	12.2%


Selected WACC	10.4%

AVLN.TA'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 AVLN.TA:

cost_of_equity (10.95%) = risk_free_rate (4.15%) + equity_risk_premium (7.10%) * adjusted_beta (0.92) + 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.