BOTHE.BR WACC - Weighted Average Cost of Capital
The WACC of Bone Therapeutics SA (BOTHE.BR) is 9.0%.
| Range | Selected | |
| Cost of equity | 33.8% - 53.3% | 43.55% |
| Tax rate | 0.4% - 0.5% | 0.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 10.0% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 6.4% | 7.4% |
| Adjusted beta | 4.78 | 6.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 33.8% | 53.3% |
| Tax rate | 0.4% | 0.5% |
| Debt/Equity ratio | 8.55 | 8.55 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 10.0% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BOTHE.BR | Bone Therapeutics SA | 8.55 | 0.32 | 0.03 |
| ADXN.SW | Addex Therapeutics Ltd | 0.05 | 0.29 | 0.28 |
| ALPHA.PA | Pharnext SA | 19402.47 | -0.69 | 0 |
| BIO.MC | Biosearch SA | 0 | 1 | 1 |
| BONEH.HE | BBS-Bioactive Bone Substitutes Oyj | 3.15 | 1.73 | 0.42 |
| CIR.L | Circassia Group PLC | 0.01 | 1.87 | 1.86 |
| CNWK.DE | Co.don AG | 0.3 | 1.23 | 0.95 |
| CYXO.ST | Cyxone AB | 0.13 | -0.83 | -0.74 |
| ECX.DE | Epigenomics AG | 7.04 | 0.61 | 0.08 |
| RTALB.IS | RTA Laboratuvarlari Biyolojik Urunler Ilac ve Makine Sanayi Ticaret AS | 0.03 | 0.33 | 0.32 |
| Low | High | |
| Unlevered beta | 0.2 | 0.36 |
| Relevered beta | 6.64 | 9.4 |
| Adjusted relevered beta | 4.78 | 6.63 |
BOTHE.BR'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 BOTHE.BR:
cost_of_equity (43.55%) = risk_free_rate (3.45%) + equity_risk_premium (6.90%) * adjusted_beta (4.78) + 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.