ABVX.PA WACC - Weighted Average Cost of Capital
The WACC of Abivax SA (ABVX.PA) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.0% - 11.7% | 9.35% |
| Tax rate | 3.6% - 6.2% | 4.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 10.1% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.68 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 11.7% |
| Tax rate | 3.6% | 6.2% |
| Debt/Equity ratio | 0.3 | 0.3 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 10.1% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ABVX.PA | Abivax SA | 0.3 | 1.69 | 1.32 |
| ALBPS.PA | Biophytis SA | 2.31 | 0.86 | 0.27 |
| ALNOV.PA | Novacyt SA | 0.38 | 2.09 | 1.54 |
| HPHA.DE | Heidelberg Pharma AG | 0.14 | 0.36 | 0.32 |
| IVACC.ST | Intervacc AB | 0 | 1.4 | 1.4 |
| MAB.WA | Mabion SA | 0.22 | 0.92 | 0.76 |
| SCLP.L | Scancell Holdings PLC | 0.19 | -0.31 | -0.26 |
| SIGHT.PA | Gensight Biologics SA | 0.77 | 0.81 | 0.47 |
| TILS.L | Tiziana Life Sciences PLC | 0.01 | -1.34 | -1.34 |
| VVY.AS | Vivoryon Therapeutics NV | 0 | 1.2 | 1.2 |
| Low | High | |
| Unlevered beta | 0.41 | 0.93 |
| Relevered beta | 0.52 | 1.19 |
| Adjusted relevered beta | 0.68 | 1.13 |
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.