ALLR.ST WACC - Weighted Average Cost of Capital
The WACC of Allarity Therapeutics A/S (ALLR.ST) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.1% | 7.65% |
| Tax rate | 19.1% - 20.0% | 19.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 9.0% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.3% | 2.8% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.81 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.1% |
| Tax rate | 19.1% | 20.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 9.0% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALLR.ST | Allarity Therapeutics A/S | 0.03 | 1.07 | 1.05 |
| AEGIR.ST | Aegirbio AB | 4 | 0.98 | 0.23 |
| ALNEV.PA | Neovacs SA | 24 | 2.27 | 0.11 |
| ALNOX.PA | NOXXON Pharma NV | 0 | 1.83 | 1.83 |
| ALPAT.PA | Plant Advanced Technologies PAT SA | 0.41 | 0.28 | 0.21 |
| ALPRE.PA | Predilife SA | 0.52 | 0.39 | 0.27 |
| GV.PA | Genomic Vision SA | 3.51 | 0.24 | 0.06 |
| MTPH.L | Midatech Pharma PLC | 0.72 | 1.72 | 1.09 |
| PUR.WA | Pure Biologics SA | 0.38 | -1.23 | -0.94 |
| SENZA.ST | SenzaGen AB | 0.01 | 1.03 | 1.02 |
| Low | High | |
| Unlevered beta | 0.22 | 0.57 |
| Relevered beta | 0.72 | 1.01 |
| Adjusted relevered beta | 0.81 | 1.01 |
ALLR.ST'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 ALLR.ST:
cost_of_equity (7.65%) = risk_free_rate (2.55%) + equity_risk_premium (5.20%) * adjusted_beta (0.81) + 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.