BIOPOR.CO WACC - Weighted Average Cost of Capital
The WACC of Bioporto A/S (BIOPOR.CO) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.6% | 6.5% |
| Tax rate | 7.7% - 7.9% | 7.8% |
| Cost of debt | 7.0% - 7.7% | 7.35% |
| WACC | 5.4% - 7.6% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.53 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.6% |
| Tax rate | 7.7% | 7.9% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.0% | 7.7% |
| After-tax WACC | 5.4% | 7.6% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIOPOR.CO | Bioporto A/S | 0.02 | 0.39 | 0.39 |
| B8F.DE | Biofrontera AG | 1.3 | 0.33 | 0.15 |
| BIO.MC | Biosearch SA | 0 | 1 | 1 |
| BML.WA | Biomed Lublin Wytwornia Surowic i Szczepionek SA | 0.04 | 0.41 | 0.4 |
| BOTHE.BR | Bone Therapeutics SA | 8.55 | 0.32 | 0.04 |
| COX.PA | Nicox SA | 0.97 | 0.98 | 0.52 |
| CYXO.ST | Cyxone AB | 0.13 | -0.83 | -0.74 |
| HBC.OL | Hofseth Biocare ASA | 0.25 | 0.7 | 0.57 |
| SANION.ST | Saniona AB | 0.01 | -0.36 | -0.36 |
| TNG.PA | Transgene SA | 0.01 | 0.54 | 0.53 |
| Low | High | |
| Unlevered beta | 0.29 | 0.45 |
| Relevered beta | 0.3 | 0.45 |
| Adjusted relevered beta | 0.53 | 0.63 |
BIOPOR.CO'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 BIOPOR.CO:
cost_of_equity (6.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.