CLN.WA WACC - Weighted Average Cost of Capital
The WACC of Celon Pharma SA (CLN.WA) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.8% - 9.6% | 8.7% |
| Tax rate | 18.8% - 30.2% | 24.5% |
| Cost of debt | 7.0% - 8.0% | 7.5% |
| WACC | 7.8% - 9.6% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.36 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 9.6% |
| Tax rate | 18.8% | 30.2% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.0% | 8.0% |
| After-tax WACC | 7.8% | 9.6% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CLN.WA | Celon Pharma SA | 0.01 | 0.42 | 0.41 |
| AMYT.L | Amryt Pharma Holdings Ltd | 0.34 | 0.05 | 0.04 |
| CALTX.ST | Calliditas Therapeutics AB | 0.08 | -0.02 | -0.02 |
| ENZY.ST | Enzymatica AB (publ) | 0 | 0.71 | 0.71 |
| FCM.MI | Friulchem SpA | 2.72 | 0.15 | 0.05 |
| HYL.BR | Hyloris Pharmaceuticals SA | 0.01 | 1.49 | 1.48 |
| INDEX.ST | InDex Pharmaceuticals Holding AB | 0.01 | -0.92 | -0.91 |
| MARI.VI | Marinomed Biotech AG | 0.83 | 0.13 | 0.08 |
| PHO.OL | Photocure ASA | 0.02 | 0.24 | 0.24 |
| SHE.MI | Shedir Pharma Srl Unipersonale | 0.15 | -0.16 | -0.14 |
| Low | High | |
| Unlevered beta | 0.05 | 0.14 |
| Relevered beta | 0.04 | 0.15 |
| Adjusted relevered beta | 0.36 | 0.43 |
CLN.WA'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 CLN.WA:
cost_of_equity (8.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.