ERYP.PA WACC - Weighted Average Cost of Capital

The WACC of Erytech Pharma SA (ERYP.PA) is 6.3%.

The Cost of Equity of Erytech Pharma SA (ERYP.PA) is 8.30%.

The Cost of Debt of Erytech Pharma SA (ERYP.PA) is 5.50%.

	Range	Selected
Cost of equity	6.50% - 10.10%	8.30%
Tax rate	-% - 35.60%	17.80%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.2% - 7.3%	6.3%

WACC

ERYP.PA WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	6.2%	7.2%
Adjusted beta	0.55	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	10.10%

Tax rate	-%	35.60%
Debt/Equity ratio	1.01	1.01
Cost of debt	4.00%	7.00%

After-tax WACC	5.2%	7.3%


Selected WACC	6.3%

ERYP.PA'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 ERYP.PA:

cost_of_equity (8.30%) = risk_free_rate (3.35%) + equity_risk_premium (6.70%) * adjusted_beta (0.55) + 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.