ALL.WA WACC - Weighted Average Cost of Capital

The WACC of Ailleron SA (ALL.WA) is 11.2%.

The Cost of Equity of Ailleron SA (ALL.WA) is 16.75%.

The Cost of Debt of Ailleron SA (ALL.WA) is 7.85%.

	Range	Selected
Cost of equity	13.70% - 19.80%	16.75%
Tax rate	18.40% - 25.00%	21.70%
Cost of debt	6.70% - 9.00%	7.85%
WACC	9.4% - 12.9%	11.2%

WACC

ALL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.29	1.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	19.80%

Tax rate	18.40%	25.00%
Debt/Equity ratio	1.1	1.1
Cost of debt	6.70%	9.00%

After-tax WACC	9.4%	12.9%


Selected WACC	11.2%

ALL.WA'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 ALL.WA:

cost_of_equity (16.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.29) + 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.