ABVX.PA
Abivax SA
Price:  
7.03 
EUR
Volume:  
73,681.00
France | Biotechnology
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ABVX.PA WACC - Weighted Average Cost of Capital

The WACC of Abivax SA (ABVX.PA) is 9.6%.

The Cost of Equity of Abivax SA (ABVX.PA) is 10.65%.
The Cost of Debt of Abivax SA (ABVX.PA) is 5.00%.

Range Selected
Cost of equity 8.60% - 12.70% 10.65%
Tax rate 3.60% - 6.20% 4.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.0% - 11.3% 9.6%
WACC

ABVX.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.97 1.27
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 12.70%
Tax rate 3.60% 6.20%
Debt/Equity ratio 0.22 0.22
Cost of debt 5.00% 5.00%
After-tax WACC 8.0% 11.3%
Selected WACC 9.6%

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 (10.65%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.97) + 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.