O2I SA (ALODI.PA) WACC Analysis

As of June 7, 2025, O2I SA (ALODI.PA) carries a Weighted Average Cost of Capital (WACC) of 7.4%. WACC reflects the blended rate O2I SA must pay to both equity and debt holders.

Within that, the cost of equity is 10.2%, the cost of debt is 5.0%, and the effective tax rate is 9.8%.

Breakdown of WACC Components

• Long-term bond rate: 2.6% – 3.1%
• Equity market risk premium: 5.2% – 6.2%
• Adjusted beta: 1.46 – 1.87
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.63

What It Means for Investors

With a selected WACC of 7.4%, O2I SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.