GNFT.PA WACC - Weighted Average Cost of Capital
The WACC of Genfit SA (GNFT.PA) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.9% | 7.95% |
| Tax rate | 1.0% - 2.1% | 1.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 8.5% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.51 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.9% |
| Tax rate | 1.0% | 2.1% |
| Debt/Equity ratio | 0.37 | 0.37 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 8.5% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GNFT.PA | Genfit SA | 0.37 | 1.62 | 1.19 |
| ADL.MC | ADL Bionatur Solutions SA | 0.49 | 0.33 | 0.22 |
| ALONC.PA | Oncodesign SA | 0.26 | 1.16 | 0.92 |
| BINV.ST | BioInvent International AB | 0.01 | 0.53 | 0.53 |
| DMYD B.ST | Diamyd Medical AB | 0.02 | 0.17 | 0.16 |
| IPH.PA | Innate Pharma SA | 0.5 | 0.99 | 0.66 |
| OSE.PA | Ose Immunotherapeutics SA | 0.35 | 1.19 | 0.88 |
| POXEL.PA | Poxel SA | 2.12 | -0.24 | -0.08 |
| SANION.ST | Saniona AB | 0.01 | -0.76 | -0.76 |
| TILS.L | Tiziana Life Sciences PLC | 0.01 | -1.34 | -1.34 |
| Low | High | |
| Unlevered beta | 0.2 | 0.58 |
| Relevered beta | 0.27 | 0.79 |
| Adjusted relevered beta | 0.51 | 0.86 |
GNFT.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 GNFT.PA:
cost_of_equity (7.95%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.51) + 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.