ACPH.BR WACC - Weighted Average Cost of Capital
The WACC of Acacia Pharma Group PLC (ACPH.BR) is 8.4%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.1% | 8% |
| Tax rate | 2.4% - 3.3% | 2.85% |
| Cost of debt | 7.0% - 12.8% | 9.9% |
| WACC | 6.9% - 9.8% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.79 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.1% |
| Tax rate | 2.4% | 3.3% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 7.0% | 12.8% |
| After-tax WACC | 6.9% | 9.8% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ACPH.BR | Acacia Pharma Group PLC | 0.31 | 1.67 | 1.28 |
| ADVIC.PA | Advicenne SA | 0.26 | 1.25 | 1 |
| AMYT.L | Amryt Pharma Holdings Ltd | 0.34 | 0.05 | 0.04 |
| EAH.L | ECO Animal Health Group PLC | 0.09 | 0.73 | 0.67 |
| ENZY.ST | Enzymatica AB (publ) | 0 | 0.61 | 0.6 |
| FCM.MI | Friulchem SpA | 2.72 | 0.15 | 0.04 |
| HYL.BR | Hyloris Pharmaceuticals SA | 0.01 | 1.48 | 1.46 |
| INDEX.ST | InDex Pharmaceuticals Holding AB | 0.01 | -0.92 | -0.91 |
| LAVI.AT | Lavipharm SA | 0.25 | 1.1 | 0.89 |
| PRL.MI | Pierrel SpA | 0.28 | 0.18 | 0.14 |
| Low | High | |
| Unlevered beta | 0.42 | 0.76 |
| Relevered beta | 0.69 | 0.78 |
| Adjusted relevered beta | 0.79 | 0.85 |
ACPH.BR'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 ACPH.BR:
cost_of_equity (8.00%) = risk_free_rate (2.95%) + equity_risk_premium (5.80%) * adjusted_beta (0.79) + 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.