Alelion Energy Systems AB (ALELIO.ST) WACC Analysis

As of May 23, 2025, Alelion Energy Systems AB (ALELIO.ST) carries a Weighted Average Cost of Capital (WACC) of 7.2%. WACC reflects the blended rate Alelion Energy Systems AB must pay to both equity and debt holders.

Within that, the cost of equity is 5.3%, the cost of debt is 7.0%, and the effective tax rate is 20.6%.

Breakdown of WACC Components

• Long-term bond rate: 2.5% – 3.0%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.46 – 0.61
• Additional risk adjustment: 0.5% – 1.0%
• Debt-to-equity ratio: 1.56

What It Means for Investors

With a selected WACC of 7.2%, Alelion Energy Systems AB must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.