BIOBV.HE WACC - Weighted Average Cost of Capital
The WACC of Biohit Oyj (BIOBV.HE) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.6% | 6.95% |
| Tax rate | 13.1% - 15.2% | 14.15% |
| Cost of debt | 4.0% - 24.4% | 14.2% |
| WACC | 5.3% - 8.8% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.45 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.6% |
| Tax rate | 13.1% | 15.2% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 24.4% |
| After-tax WACC | 5.3% | 8.8% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIOBV.HE | Biohit Oyj | 0.01 | 0.18 | 0.18 |
| ALBLU.PA | Bluelinea SA | 0.44 | 0.87 | 0.63 |
| ALIMP.PA | Implanet SA | 0.49 | 0.86 | 0.61 |
| ALSPW.PA | Spineway SA | 24.69 | -0.03 | 0 |
| ALTER.PA | Theradiag SA | 0.12 | 0.11 | 0.1 |
| ALTHE.PA | Theraclion SA | 0.15 | 1.46 | 1.29 |
| ALVMG.PA | Visiomed Group SA | 0.15 | 1.22 | 1.09 |
| NXTMH.HE | Nexstim Oyj | 0.1 | 0.18 | 0.16 |
| PLUN.ST | ProstaLund AB | 0.04 | 0.17 | 0.16 |
| SUN.L | Surgical Innovations Group PLC | 0.3 | 0.73 | 0.58 |
| Low | High | |
| Unlevered beta | 0.17 | 0.59 |
| Relevered beta | 0.18 | 0.6 |
| Adjusted relevered beta | 0.45 | 0.73 |
BIOBV.HE'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 BIOBV.HE:
cost_of_equity (6.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.45) + 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.