ALD SA (ALD.PA) WACC Analysis

As of June 1, 2025, ALD SA (ALD.PA) carries a Weighted Average Cost of Capital (WACC) of 9.1%. WACC reflects the blended rate ALD SA must pay to both equity and debt holders.

Within that, the cost of equity is 27.1%, the cost of debt is 4.0%, and the effective tax rate is 25.7%.

Breakdown of WACC Components

• Long-term bond rate: 2.6% – 3.1%
• Equity market risk premium: 5.8% – 6.8%
• Adjusted beta: 4.21 – 4.66
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 11.38

What It Means for Investors

With a selected WACC of 9.1%, ALD SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.