ALSEN.PA WACC - Weighted Average Cost of Capital
The WACC of Sensorion SA (ALSEN.PA) is 8.9%.
| Range | Selected | |
| Cost of equity | 6.8% - 11.3% | 9.05% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 11.1% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.66 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 11.3% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 11.1% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALSEN.PA | Sensorion SA | 0.02 | 1.27 | 1.25 |
| BGBIO.OL | Bergenbio ASA | 0.02 | 1.68 | 1.66 |
| DMYD B.ST | Diamyd Medical AB | 0.02 | 0.45 | 0.44 |
| FARN.L | Faron Pharmaceuticals Oy | 0.04 | 0.2 | 0.19 |
| MDXH.BR | MDxHealth SA | 0.44 | 1.88 | 1.43 |
| ORY.MC | Oryzon Genomics SA | 0.05 | 0.53 | 0.51 |
| SANION.ST | Saniona AB | 0.01 | -0.32 | -0.32 |
| SCLP.L | Scancell Holdings PLC | 0.19 | -0.09 | -0.08 |
| XBRANE.ST | Xbrane Biopharma AB | 0.47 | 1.31 | 0.97 |
| XSPRAY.ST | XSpray Pharma AB (publ) | 0.07 | 1.43 | 1.37 |
| Low | High | |
| Unlevered beta | 0.48 | 1.08 |
| Relevered beta | 0.49 | 1.1 |
| Adjusted relevered beta | 0.66 | 1.07 |
ALSEN.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 ALSEN.PA:
cost_of_equity (9.05%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.66) + 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.