BVXP.L
Bioventix PLC
Price:  
2,770.00 
GBP
Volume:  
6,328.00
United Kingdom | Biotechnology
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BVXP.L WACC - Weighted Average Cost of Capital

The WACC of Bioventix PLC (BVXP.L) is 7.1%.

The Cost of Equity of Bioventix PLC (BVXP.L) is 10.05%.
The Cost of Debt of Bioventix PLC (BVXP.L) is 5.00%.

Range Selected
Cost of equity 8.20% - 11.90% 10.05%
Tax rate 17.20% - 17.30% 17.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.2% - 8.0% 7.1%
WACC

BVXP.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.7 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 11.90%
Tax rate 17.20% 17.30%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.2% 8.0%
Selected WACC 7.1%

BVXP.L'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 BVXP.L:

cost_of_equity (10.05%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.7) + 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.