ALPHA.PA WACC - Weighted Average Cost of Capital

The WACC of Pharnext SA (ALPHA.PA) is 5.5%.

The Cost of Equity of Pharnext SA (ALPHA.PA) is 15,316.50%.

The Cost of Debt of Pharnext SA (ALPHA.PA) is 6.40%.

	Range	Selected
Cost of equity	7,588.70% - 23,044.30%	15,316.50%
Tax rate	25.90% - 27.10%	26.50%
Cost of debt	5.80% - 7.00%	6.40%
WACC	4.7% - 6.3%	5.5%

WACC

ALPHA.PA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.8%	6.8%
Adjusted beta	1303.38	3378.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	7,588.70%	23,044.30%

Tax rate	25.90%	27.10%
Debt/Equity ratio	19402.44	19402.44
Cost of debt	5.80%	7.00%

After-tax WACC	4.7%	6.3%


Selected WACC	5.5%

ALPHA.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 ALPHA.PA:

cost_of_equity (15,316.50%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1303.38) + 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.