ALGEN.PA
Genoway SA
Price:  
3.00 
EUR
Volume:  
3,669.00
France | Biotechnology
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ALGEN.PA WACC - Weighted Average Cost of Capital

The WACC of Genoway SA (ALGEN.PA) is 5.6%.

The Cost of Equity of Genoway SA (ALGEN.PA) is 6.05%.
The Cost of Debt of Genoway SA (ALGEN.PA) is 5.00%.

Range Selected
Cost of equity 5.30% - 6.80% 6.05%
Tax rate 17.00% - 23.10% 20.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.0% - 6.2% 5.6%
WACC

ALGEN.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.39 0.41
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 6.80%
Tax rate 17.00% 23.10%
Debt/Equity ratio 0.24 0.24
Cost of debt 5.00% 5.00%
After-tax WACC 5.0% 6.2%
Selected WACC 5.6%

ALGEN.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 ALGEN.PA:

cost_of_equity (6.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.39) + 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.