BIOV.TA WACC - Weighted Average Cost of Capital

The WACC of Bio-View Ltd (BIOV.TA) is 9.3%.

The Cost of Equity of Bio-View Ltd (BIOV.TA) is 9.55%.

The Cost of Debt of Bio-View Ltd (BIOV.TA) is 5.50%.

	Range	Selected
Cost of equity	8.30% - 10.80%	9.55%
Tax rate	21.00% - 26.70%	23.85%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.0% - 10.5%	9.3%

WACC

BIOV.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.56	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.80%

Tax rate	21.00%	26.70%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.00%	7.00%

After-tax WACC	8.0%	10.5%


Selected WACC	9.3%

BIOV.TA'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 BIOV.TA:

cost_of_equity (9.55%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.56) + 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.