GEN.WA WACC - Weighted Average Cost of Capital
The WACC of Genomed SA (GEN.WA) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.8% - 12.7% | 10.25% |
| Tax rate | 7.9% - 8.4% | 8.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 8.6% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.37 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 12.7% |
| Tax rate | 7.9% | 8.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 8.6% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GEN.WA | Genomed SA | 0.98 | -0.22 | -0.11 |
| ABNX.PA | Abionyx Pharma SA | 0.07 | -0.14 | -0.13 |
| ALPAT.PA | Plant Advanced Technologies PAT SA | 0.39 | -0.02 | -0.02 |
| ALPRE.PA | Predilife SA | 0.44 | 0.49 | 0.35 |
| ALZ.ST | Alzinova AB | 0 | 0.55 | 0.54 |
| GV.PA | Genomic Vision SA | 3.51 | 0.24 | 0.06 |
| MTPH.L | Midatech Pharma PLC | 0.72 | 1.72 | 1.04 |
| PROMO.ST | Promore Pharma AB | 0.12 | -0.77 | -0.69 |
| RDG.WA | Read Gene SA | 0.09 | -0.01 | -0.01 |
| SCS.WA | Stem Cells Spin SA | 0.01 | 0.58 | 0.57 |
| VAL.L | ValiRx PLC | 0.01 | 0.48 | 0.47 |
| Low | High | |
| Unlevered beta | -0.01 | 0.35 |
| Relevered beta | 0.06 | 0.76 |
| Adjusted relevered beta | 0.37 | 0.84 |
GEN.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 GEN.WA:
cost_of_equity (10.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.37) + 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.