GNS.L WACC - Weighted Average Cost of Capital
The WACC of Genus PLC (GNS.L) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.6% - 11.9% | 9.75% |
| Tax rate | 21.5% - 23.4% | 22.45% |
| Cost of debt | 4.7% - 5.7% | 5.2% |
| WACC | 6.9% - 10.6% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.6 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 11.9% |
| Tax rate | 21.5% | 23.4% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.7% | 5.7% |
| After-tax WACC | 6.9% | 10.6% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GNS.L | Genus PLC | 0.21 | 2.48 | 2.13 |
| ABC.L | Abcam PLC | 0.08 | 0.39 | 0.37 |
| GLPG.AS | Galapagos NV | 0.01 | 0.95 | 0.94 |
| HNSA.ST | Hansa Biopharma AB | 0.67 | 0.49 | 0.33 |
| MOR.DE | MorphoSys AG | 0.1 | 0.01 | 0.01 |
| OXB.L | Oxford BioMedica PLC | 0.34 | 1.5 | 1.19 |
| PHM.MC | Pharma Mar SA | 0.03 | 1.36 | 1.32 |
| RLF.SW | RELIEF THERAPEUTICS Holding SA | 0.08 | -1 | -0.94 |
| VACC.OL | Vaccibody AS | 0 | 1.08 | 1.08 |
| ZEAL.CO | Zealand Pharma A/S | 0.01 | 0.78 | 0.77 |
| ADAP | Adaptimmune Therapeutics PLC | 0.71 | 0.13 | 0.08 |
| Low | High | |
| Unlevered beta | 0.37 | 0.94 |
| Relevered beta | 0.4 | 0.99 |
| Adjusted relevered beta | 0.6 | 0.99 |
GNS.L'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 GNS.L:
cost_of_equity (9.75%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.