ABVX.PA
Abivax SA
Price:  
5.23 
EUR
Volume:  
15,608
France | Biotechnology

ABVX.PA WACC - Weighted Average Cost of Capital

The WACC of Abivax SA (ABVX.PA) is 8.3%.

The Cost of Equity of Abivax SA (ABVX.PA) is 9.35%.
The Cost of Debt of Abivax SA (ABVX.PA) is 5%.

RangeSelected
Cost of equity7.0% - 11.7%9.35%
Tax rate3.6% - 6.2%4.9%
Cost of debt5.0% - 5.0%5%
WACC6.5% - 10.1%8.3%
WACC

ABVX.PA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.8%6.8%
Adjusted beta0.681.13
Additional risk adjustments0.0%0.5%
Cost of equity7.0%11.7%
Tax rate3.6%6.2%
Debt/Equity ratio
0.30.3
Cost of debt5.0%5.0%
After-tax WACC6.5%10.1%
Selected WACC8.3%

ABVX.PA'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 ABVX.PA:

cost_of_equity (9.35%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.68) + 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.