ALNOX.PA WACC - Weighted Average Cost of Capital
The WACC of NOXXON Pharma NV (ALNOX.PA) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.3% - 10.3% | 8.8% |
| Tax rate | 29.8% - 31.8% | 30.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 10.3% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 0.9 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 10.3% |
| Tax rate | 29.8% | 31.8% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 10.3% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALNOX.PA | NOXXON Pharma NV | 0 | 1.83 | 1.83 |
| ABNX.PA | Abionyx Pharma SA | 0.06 | -0.18 | -0.17 |
| AEGIR.ST | Aegirbio AB | 4 | 0.98 | 0.26 |
| ALLR.ST | Allarity Therapeutics A/S | 0.03 | 1.07 | 1.06 |
| ALNEV.PA | Neovacs SA | 24 | 2.27 | 0.13 |
| ALPAT.PA | Plant Advanced Technologies PAT SA | 0.41 | 0.28 | 0.21 |
| ALPRE.PA | Predilife SA | 0.52 | 0.39 | 0.29 |
| MTPH.L | Midatech Pharma PLC | 0.72 | 1.72 | 1.15 |
| SCS.WA | Stem Cells Spin SA | 0.01 | 0.58 | 0.57 |
| XINT.ST | Xintela AB | 1 | 0.84 | 0.5 |
| Low | High | |
| Unlevered beta | 0.28 | 0.53 |
| Relevered beta | 0.85 | 1.12 |
| Adjusted relevered beta | 0.9 | 1.08 |
ALNOX.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 ALNOX.PA:
cost_of_equity (8.80%) = risk_free_rate (2.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.9) + 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.