GENO.ST WACC - Weighted Average Cost of Capital
The WACC of Genovis AB (GENO.ST) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.5% | 7.1% |
| Tax rate | 22.2% - 33.4% | 27.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 8.3% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.63 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.5% |
| Tax rate | 22.2% | 33.4% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 8.3% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GENO.ST | Genovis AB | 0.05 | 0.88 | 0.85 |
| C4XD.L | C4X Discovery Holdings PLC | 0.02 | -0.29 | -0.29 |
| DVRG.L | Deepverge PLC | 2 | 1.3 | 0.54 |
| FAB.L | Fusion Antibodies PLC | 0.01 | 0.26 | 0.26 |
| IXI.L | IXICO PLC | 0.03 | 1.72 | 1.68 |
| OBD.L | Oxford Biodynamics PLC | 0.75 | -1.23 | -0.8 |
| ORPH.L | Open Orphan PLC | 0.02 | 1.46 | 1.45 |
| PANG.MC | Pangaea Oncology SA | 0.06 | 0.23 | 0.22 |
| RVU.WA | Ryvu Therapeutics SA | 0.14 | 1.02 | 0.93 |
| SLV.WA | Selvita SA | 0.34 | 0.77 | 0.62 |
| Low | High | |
| Unlevered beta | 0.43 | 0.71 |
| Relevered beta | 0.45 | 0.73 |
| Adjusted relevered beta | 0.63 | 0.82 |
GENO.ST'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 GENO.ST:
cost_of_equity (7.10%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.63) + 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.