ALNEV.PA
Neovacs SA
Price:  
0.01 
EUR
Volume:  
3,184,261.00
France | Biotechnology
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ALNEV.PA WACC - Weighted Average Cost of Capital

The WACC of Neovacs SA (ALNEV.PA) is 4.8%.

The Cost of Equity of Neovacs SA (ALNEV.PA) is 50.15%.
The Cost of Debt of Neovacs SA (ALNEV.PA) is 5.00%.

Range Selected
Cost of equity 24.40% - 75.90% 50.15%
Tax rate 8.70% - 12.80% 10.75%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 4.9% 4.8%
WACC

ALNEV.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 3.68 10.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 24.40% 75.90%
Tax rate 8.70% 12.80%
Debt/Equity ratio 142.8 142.8
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 4.9%
Selected WACC 4.8%

ALNEV.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 ALNEV.PA:

cost_of_equity (50.15%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (3.68) + 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.