BIO.MC WACC - Weighted Average Cost of Capital
The WACC of Biosearch SA (BIO.MC) is 8.9%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.2% | 8.95% |
| Tax rate | 17.2% - 23.0% | 20.1% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 7.7% - 10.2% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.78 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.2% |
| Tax rate | 17.2% | 23.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 7.7% | 10.2% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIO.MC | Biosearch SA | 0 | 1 | 1 |
| ALONX.PA | Onxeo SA | 0.3 | 3.34 | 2.68 |
| B8F.DE | Biofrontera AG | 1.3 | 0.33 | 0.16 |
| BIO.WA | Bioton SA | 0.16 | 0.24 | 0.21 |
| CIR.L | Circassia Group PLC | 0.01 | 1.87 | 1.86 |
| COX.PA | Nicox SA | 0.97 | 0.98 | 0.55 |
| ERYP.PA | Erytech Pharma SA | 1.01 | 2.91 | 1.6 |
| PA8.DE | Paion AG | 11.41 | 3.58 | 0.35 |
| POLN.SW | Polyphor AG | 0.41 | 0.62 | 0.46 |
| RTALB.IS | RTA Laboratuvarlari Biyolojik Urunler Ilac ve Makine Sanayi Ticaret AS | 0.03 | 0.33 | 0.32 |
| Low | High | |
| Unlevered beta | 0.42 | 0.73 |
| Relevered beta | 0.67 | 0.82 |
| Adjusted relevered beta | 0.78 | 0.88 |
BIO.MC'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 BIO.MC:
cost_of_equity (8.95%) = risk_free_rate (3.05%) + equity_risk_premium (6.80%) * adjusted_beta (0.78) + 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.