ADL Partner SA (ALP.PA) WACC Analysis

As of May 28, 2025, ADL Partner SA (ALP.PA) carries a Weighted Average Cost of Capital (WACC) of 7.0%. WACC reflects the blended rate ADL Partner SA must pay to both equity and debt holders.

Within that, the cost of equity is 6.9%, the cost of debt is 4.0%, and the effective tax rate is 33.0%.

Breakdown of WACC Components

• Long-term bond rate: 2.6% – 3.1%
• Equity market risk premium: 5.2% – 6.2%
• Adjusted beta: 0.82 – 0.9
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.24

What It Means for Investors

With a selected WACC of 7.0%, ADL Partner SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.